CoinDesk reported:
“What you’re doing is batching liquidity,” Chu said. “Because an AMM is ongoing, continuous liquidity, everything’s done asynchronously and it can take some time before it finds equilibrium, and there’s a little bit of a gaming aspect there. This type of batching of liquidity is good for nascent markets, and it’s very common. If you think about the New York Stock Exchange, it actually started as the daily auction, so it wasn’t a continuous market, as we know now.”