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Off-Chain Orderbook, On-Chain Settlement

For "Off-Chain Orderbook, On-Chain Settlement" decentralized exchanges, final trades occur on chain but every order is hosted by a third party called a Relayer. This was the style of many early generation decentralized exchanges built on Ethereum.

Exchanges

Pros

  • Faster order management than On-Chain solutions
  • Less fees involved than On-Chain solutions

Cons

  • No full guarantee that a maker order is still active
  • The relayer could front run an order