ORDER BOOK PERP DEXS

Summary from the TLDR Crypto newsletter

Nearly all current DEXs running perpetual contracts operate their order books off-chain, creating greater potential for manipulation and higher risk than frontrunning and sandwiching on AMMs. This thread explains how, for DEXs to provide fair and transparent trading, order books must operate fully on-chain, ensuring proper price-time priority and eliminating opportunities for manipulation by order book operators. On-chain order book execution will require fundamental infrastructure innovation and has yet to be massively adopted.