CLOB wars: why onchain orderbooks are replacing AMMs and who builds them
Quote242 words
AMMs were a forced tradeoff until real-time chains, scalable DA, ZK proving and fast oracles made orderbooks viable. Maps CLOB appchains (Hyperliquid, Bullet, Lighter, Paradex, Hibachi) and onchain CLOBs (GTE, Nitro, Monaco, Fuel, Aptos).
Key claims
Hyperliquid's success proved CLOB PMF
Real-time chains, DA layers, ZK proving and fast oracles enable onchain orderbooks
Good post by my fren @DOLAK1NG.
CLOBs matter, and let me remind you why:
- AMMs are cool. They pioneered onchain price discovery and will remain relevant, especially for the long tail of less liquid assets.
- However, AMMs were ultimately a forced tradeoff we had to make as the infrastructure to support high-performance orderbooks simply didnt exist.
- With the emergence of real-time blockchains like @megaeth, @SeiNetwork, @fuel_network or the Move twins @Aptos and @SuiNetwork, highly scalable DA layers like @eigen_da or @celestia, and efficient ZK proving infra like @boundlesshq or @SuccinctLabs, and high-frequency oracles like @PythNetwork, this fundamentally changes.
- It's why onchain CLOBs, CLOB appchains, and all sorts of verifiable offchain CLOBs on BLOBs are now emerging at scale, following @HyperliquidX's success and clearly proven PMF.
- CLOBs are crucial infra that will provide the basis for a truly mature and scalable internet-native financial system. It's how DeFi will put CEXes and ultimately TradFi more broadly out of business.
- Top appchain plays aside HL include @bulletxyz, @Lighter_xyz, @paradex and @hibachi_xyz.
- Onchain CLOBs include @valhalla_defi, @wcm_inc, @GTE_XYZ (on MegaETH), @nitro_dex (on @risechain), @monacotrading (on Sei), and the in-house initiatives by @fuel_network and @Aptos, among others.
- For a full CLOB landscape overview check my post linked in the comments, and for more details on the AMM vs. CLOB comparison on a tech level, check the quoted thread.
Def a narrative to DYOR on anon.
Full CLOB Wars Overview:
QUOTING @DOLAK1NG
Everyone’s building the next Uniswap. But the real war? It’s being fought in silence… among protocols racing to become the NASDAQ of the blockchain. Here’s what you need to know about the most important battle in DeFi: The CLOB Wars 🧵 t.co/KPOlRTQbQ4
Everyone’s building the next Uniswap. But the real war? It’s being fought in silence… among protocols racing to become the NASDAQ of the blockchain. Here’s what you need to know about the most important battle in DeFi: The CLOB Wars 🧵 t.co/KPOlRTQbQ4