Concepts

Request-for-Quote (RFQ)

RFQ is a trading model where a buyer (the taker) requests a price for a specific trade, and one or more sellers (makers) respond with firm, binding quotes. The taker then selects the best quote and executes it.

This is the model used by institutional OTC trading desks, and it produces far better outcomes than AMMs for large trades:

AMM vs RFQ Comparison

PropertyAMM (Uniswap-style)RFQ (HyperDex)
Price sourceBonding curve (x·y=k)Competing professional makers
SlippageAlways — increases with sizeZero — price is fixed at quote time
MEV exposureHigh — mempool visibleNone — price locked before on-chain submission
Large trade qualityDegrades with sizeConsistent — makers hedge externally
Price transparencyOn-chain visiblePrivate until settlement
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