Layer 2 Based
Layer 2 decentralized exchanges are built on layer 2 scaling methods, bringing much of the benefits regarding saving on on-chain transaction gas fees, settlement speed, and scalability - but also inherit the potential underlying weaknesses.
- Faster order management than on-chain solutions
- Less fees involved than on-chain solutions
- Same scalability as centralized exchanges
- Inherit the potential weaknesses of the underlying layer 2 solutions