SDEX

Stellar’s native order book exchange, how it differs from Soroswap AMMs, and why the aggregator excludes it.

What is Stellar SDEX, what is the difference with Soroswap.Finance and why it is not aggregated by the Soroswap Aggregator

What is Stellar SDEX?

Stellar SDEX (Stellar Decentralized Exchange) is the native decentralized exchange of the Stellar network. It allows users to trade assets directly on the Stellar blockchain through a system of order books. Here’s how it operates:

• Order Books: Stellar SDEX uses order books to facilitate trades. Users place buy and sell offers in the order book, which are matched based on price and time priority.
• Order Types: Users can create various types of orders, such as market or limit orders. Orders are automatically matched against existing orders in the book.
• Asset Exchange: Trades are executed by matching buy and sell orders within the order books. Assets are exchanged directly between users without needing an intermediary.
• Path Payments: If there is no direct order for an asset pair, Stellar allows path payments to find the best route through multiple assets to complete the trade.

Feature	Stellar SDEX	Soroswap.Finance
Exchange Model	Order book (buy and sell orders)	Automated Market Makers (AMMs)
Pricing Mechanism	Based on matching orders in the order book	Based on mathematical formulas (e.g., x * y = k)
Liquidity Provision	Users place orders in the order book	Users deposit assets into liquidity pools
Transaction Execution	Executes orders directly based on price-time priority	Executes transactions through AMM, adjusting prices according to reserves
Order Types	Limit and passive orders	Interactions with AMM, no traditional limit orders
Aggregator Integration	Generally not integrated into AMM aggregators	Integrated into aggregators that support AMMs