Great summary here!
i read the full report by @sui414, @ballsyalchemist &
. Proving how Solver-based DEXes are clear winner.
how DEXes evolved to improve Execution Welfare ?
before AMMs, on-chain order books were the norm—clunky and requiring deep liquidity.
then AMMs (like uniswap) changed everything:
✅ instant trades
✅ no need for direct counterparties
✅ liquidity provided by users instead of pros
but AMMs weren’t perfect. they introduced impermanent loss, high slippage, and opened the door to MEV attacks.
so new models emerged:
🔹 PMM (professional market makers) – market makers hedge across CEXes and DEXes, profiting through trading strategies
🔹 solver-based DEXes – smart order routing for optimal execution (e.g., cowswap)
let’s talk more about Execution Welfare—how much better (or worse) you are after making a trade
if a trade is fair, efficient, and low-cost, execution welfare is high. if it’s costly, inefficient, or MEV-ridden, it’s low.
what affects it?
• slippage – how far off you are from the expected price
• gas fees – cost to execute
• MEV – whether someone extracts value from your trade
execution welfare does shifts with market conditions
📉 low volatility – AMMs work fine, execution is stable
📈 high volatility – AMMs struggle, order books & solvers perform better
why solver-based DEXes win?
solver-based DEXes are the next step in DEFI trading—smarter, cheaper, and more efficient than traditional AMM like uniswap. instead of static pools, solvers use advanced algorithms to optimize trades in real-time, aggregating liquidity, batching transactions, and dynamically routing orders for the best price with lower slippage.
how they work:
✅ scan on-chain AMM pools
✅ tap into off-chain RFQs
✅ route through order books
by leveraging all these sources, solvers consistently deliver better execution, especially for larger trades.
as on-chain liquidity grows and solver competition intensifies, expect even better prices, lower costs, and superior trade execution.
if you're still trading on basic AMM, you're leaving money on the table.
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