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CLO Wars: How Hyperliquid Revived Demand for Order Books and Why This Matters for DeFi - INCRYPTED
The rapid rise of the Hyperliquid derivatives platform, launched in February 2025, has not only set a new 'quality standard' for DeFi but has also led to a wave of projects eager to replicate this success.
One manifestation of the new trend has been the competition among developers in the implementation of on-chain order books — the so-called "CLOB wars". This technology is considered one of the key factors behind Hyperliquid's rise and will likely be used in next-generation decentralized platforms. However, this is far from the first attempt to popularize the order book on the blockchain.
The Incrypted editorial team figured out what a centralized limit order book (CLOB) is, why this technology is so important for the rise of DeFi, and how developers are trying to achieve a user experience comparable to centralized exchanges (CEX).