Traders interact with Odyssey via an off-chain orderbook that supports both market and limit orders. The orderbook evaluates incoming orders and determines if they can be matched with other, previously submitted orders. Because all orders are matched, every long position has an equal number of short counterparties and vice versa—the DEX itself is never the counterparty.

By operating off-chain, the orderbook can be much more performant and lower cost than on-chain models. The speed and low interaction cost helps Hook deliver more efficient markets and better pricing to users.

Preexisting NFT perpetual products used a vAMM, which caused them to prematurely shut down.

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