Order books have proven highly effective in traditional finance (TradFi) but reveal limitations when applied to decentralized finance (DeFi). Many protocols still rely on off-chain order books as matching engines and handle settlement on-chain. Others have eliminated centralization and replaced order books with Automated Market Makers (AMMs). The primary distinction between these two approaches lies in how they quote prices. Let's delve into and analyze each in detail. The Difference Bet...