Historically, decentralized exchanges (DEXs) have favored automated market makers (AMMs) over order books due to the impracticality of matching orders directly on the blockchain. This is largely because blockchains have inherent limitations, such as latency and transaction throughput. While AMMs provide an effective solution to these challenges, they come with their own set of drawbacks. As a result, over still occurs on centralized exchanges, where these limitations don't apply.
Speed: The performance and speed limitations of DEXs make them unsuitable for Scalping or Day trading. Scalping trades happen in a second or less, but, a transaction confirmation for finalising a trade might take several seconds if not minutes, by the end of which there might be price changes.
Scalability: Whereas prominent centralised exchanges process hundreds of thousands of orders per second, blockchains, where decentralised exchanges are deployed, can only manage hundreds of orders each second. As a result, the number of users who could use a decentralised exchange is way smaller and more limited compared to that of centralised exchanges.
Cross-Chain Trading: Decentralised exchanges are limited to the liquidity volumes available on their chosen blockchain which is relatively small due to liquidity fragmentation as a result of ever growing number of blockchains. Centralised exchanges, on the other hand, pool all the liquidity available on all chains together which enables cross-chain trading and makes them much more capital-efficient in comparison.
Capital Efficiency: Decentralised exchanges commonly use automated market makers (AMMs) for trading, but this method is not capital efficient. AMMs require large liquidity pools that often lock up significant capital, particularly in low-volume pairs where returns may not justify the investment. In contrast, centralised exchanges match buyers and sellers through order books, optimizing capital use and providing more flexible liquidity.
Zellular Exchange merges the advantages of centralised and decentralised exchanges by offering a permissionless yet efficient trading environment. Leveraging its decentralised matching engine, powered by the , it delivers order-driven trading with high throughput. Hosted on EigenLayer and secured through ETH restaking, it provides a sufficiently decentralised and secure platform.
Zelullar Exchange is capable of providing the following distinctive features:
Speed
Matching orders in 1 second.
Scalability
Processing 100k orders per second.
Cross-chain Trading
Supporting tokens on EVM chains, Bitcoin, Monero, etc.
Capital Efficiency
Order-driven with no dependency on liquidity pools.
By enabling the features above, Zellular Exchange aims to capture a significant share of the market currently dominated - by over 90% - by centralised exchanges.