If you’ve ever built or interacted with DeFi protocols, you know the mathematical limitations of Constant Product Market Makers ($x \times y = k$). While AMMs are great for retail liquidity, executing a large transaction (e.g., $100,000+) directly against a liquidity pool triggers two major issues:
Severe Slippage: The marginal price of the asset degrades exponentially relative to the trade size.
MEV Exploitation (Sandwich Attacks): Public mempool transactions are highly vulnerable. Front-running bots will buy the asset ahead of your execution block, push the price up to your maximum slippage limit, and dump it immediately after.
To solve this without relying on centralized, custodial desks or risky off-chain escrow setups, we built Typelex—a decentralized, non-custodial P2P OTC protocol.
Here is a look at how we bypassed the AMM bonding curve entirely using on-chain atomic swaps.
