[Next-Gen On-Chain FX] Why Sera Protocol Replaced AMM with CLOB: A Technical Deep Dive

1. Introduction: The "Limits" of Existing DEXs in FX Settlement In the current DeFi (Decentralized Finance) landscape, AMMs (Automated Market Makers) like Uniswap are the dominant force. However, for "stablecoin-to-stablecoin swaps (on-chain FX)" such as USDC and JPYC, AMMs are not necessarily the optimal solution. This is where Sera Protocol comes in. 1.1 Why is Uniswap (AMM) Not Enough? The foundational $x imes y = k$ model of AMMs is excellent for "price discovery" of unknown assets. However, for stablecoins, the price is already determined in off-chain fiat markets. Existing AMMs face three major challenges: Slippage : Prices become increasingly unfavorable as trading volume grows. Impermanent Loss : Liquidity providers are constantly exposed to risk. Capital Efficiency : Liquidity must be "locked away" in pools, leading to underutilization. 1.2 The Challenge of Sera Protocol Sera Protocol is a fully on-chain Central Limit Order Book (CLOB) currently operating on the Ethereum Sepol