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Execution diagram added.
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oskin1 committed Sep 9, 2021
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Expand Up @@ -57,6 +57,8 @@ While in CFMMs liquidity is uniformly distributed along the reserve curve, which

For the sake of efficiency most of the DEX actions are split into two stages: 1. order creation 2. execution. Once an order is submitted to the network it can be executed by off-chain bots. Off-chain bot is a piece of software that tracks orders and makes transactions from them performing all the necessary state transitions. Legitimacy of all transitions is checked on-chian by validation scripts. Off-chain bot can be run by anyone who is willing to support ErgoDEX and earn execution fees.

![OffChainExecution](img/OffChainExec.jpg)

## Tokenomics

In the ErgoDEX each actor is incentivized to fulfill his role as well as possible.
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