Order Matching Pools

Definition ∞ Order matching pools are systems or mechanisms within decentralized exchanges or trading platforms designed to pair buy orders with corresponding sell orders for digital assets. These pools aggregate liquidity and execute trades when price and quantity conditions are met. Unlike traditional order books, some decentralized implementations use automated market makers or other specialized algorithms for matching. They are fundamental to the functioning of efficient secondary markets for cryptocurrencies.
Context ∞ The efficiency and design of order matching pools are central to the performance of decentralized trading platforms, with news often comparing different approaches. Innovations in these pools, such as those minimizing slippage or maximizing capital efficiency, are frequently reported. The integrity of order matching pools is crucial for preventing market manipulation.