Dominance

Order Book VS AMM

Most conventional markets operate on a central limit order book system, familiar to anyone who has traded stocks through brokerage firms. This system organizes buy and sell orders by price levels, filling them progressively as market demand shifts. However, Facet diverges from this traditional path.

Facet employs an Automated Market Maker (AMM), also known as a Constant Function Market Maker, instead of the typical order book. At its core, an AMM replaces the conventional buy and sell orders with a liquidity pool containing two assets valued against each other. As trades occur, the relative values of these assets adjust, establishing a new market rate for both.

In this innovative system, traders interact directly with the pool, bypassing the need for specific orders from other parties. This shift from the traditional order book to an AMM offers a unique set of advantages and disadvantages, currently a hot topic among researchers and innovators in the field. Facet is at the forefront of this research, gathering and contributing insights on our dedicated research page.

Permissionless Systems

Facet stands apart from traditional markets with its unwavering commitment to a permissionless and immutable framework. This innovative approach is deeply rooted in the core principles of Ethereum and reflects our dedication to ensuring unrestricted access and immutability as vital elements of a future where financial services are accessible to all, free from discrimination or counter-party risk.

The permissionless nature of Facet means that its services are entirely open for public use, offering an inclusive platform where anyone can swap, provide liquidity, or create new markets without restrictions. This represents a significant shift from the conventional financial services landscape, which often imposes access limitations based on geography, wealth, and age.