DeFi has always been about marshaling liquidity and deploying it precisely. AMMs were great for bootstrapping, but they were never built for serious trading. The future belongs to CLOBs, and that future is already here 🧵⤵️

AMMs spread liquidity thinly across entire price ranges, leaving most capital idle in calm markets. When prices move, MEV bots exploit two-sided curves through sandwich attacks, systematically bleeding LPs dry while arbitrageurs profit at traders' expense.

CLOBs flip this dynamic entirely. Liquidity comes as precise, one-sided limit orders. Want to front-run a trade? You'll need to clear every resting bid or ask in your path: an expensive proposition on Fuel's UTXO engine that typically costs more than any realistic profit.

Beyond anti-MEV mechanics, CLOBs unlock sophisticated execution algorithms like TWAP and POV that depend on tick-level book data. Compare this to AMM "slicing" where slippage grows quadratically with order size and you wait hours for pools to rebalance.

Order books are self-healing. After large trades, depth replenishes instantly as new limit orders flood in. AMM pools can stay lopsided for extended periods. This resilience explains why serious traders gravitate toward venues with predictable fees and visible liquidity.

CLOBs enable an entirely new design space: decentralized derivatives, perpetual futures, options, and complex multi-leg trades. All native on-chain, no off-chain oracles required. Market makers can run toxic-flow analysis: an advantage AMMs simply can't match.