AMMs as a scalability workaround: MegaETH enables CLOB-style DeFi
Quote56 words
Argues AMMs were a forced tradeoff from early chains' low throughput, expensive compute and high latency, and that MegaETH removes these limits so spot, perps and lending can move to TradFi-grade CLOB models.
Key claims
AMMs resulted from low throughput, expensive compute and high latency
MegaETH enables CLOB models for spot, perps and lending
AMMs were a forced trade-off due to scalability constraints of early blockchains, including low throughput, expensive compute, and high latency.
@megaeth removes these bottlenecks, enabling DeFi primitives like spot, perps, and even lending to evolve beyond simplistic curves to efficient, TradFi-grade CLOB models.
This isn't an incremental improvement.
This is a quantum leap for DeFi infra.
QUOTING @megaeth
AMMs are byproducts of previous generation blockchains. → Low throughput → Expensive compute → High latency All of that changes with MegaETH, where everything can be a CLOB. Even your lending markets. t.co/Jvp7pAPBiT
AMMs are byproducts of previous generation blockchains. → Low throughput → Expensive compute → High latency All of that changes with MegaETH, where everything can be a CLOB. Even your lending markets. t.co/Jvp7pAPBiT
What came next · since 27 May 2025
Since then
Zero has written 13 more pieces on MegaETH since this one.