What is the ordering method used in DEX instead of the order book called?

Question

What is the ordering method used in DEX instead of the order book called?

Options

A. AMM (Auto Market Maker)

B. AMA

C. MMM

D. ABC

Correct Answer: AMM (Auto Market Maker).

Explanation

• ABC, MMM, and AMA: These options do not correspond to the specific ordering method used in a Decentralized Exchange (DEX).
• AMM: This stands for “Automated Market Maker,” and it is the ordering method used in DEX instead of the traditional order book. In an AMM, prices are determined algorithmically based on the supply and demand of the assets. Therefore, the correct answer is A. AMM (Auto Market Maker).

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