Prop AMM + router market microstructure is better than order book microstructure Order books are centrally parameterized and these parameters have inertia. For example, someone (or governance) must define a tick size for an order book. Once that tick size is defined, updating it becomes a chore and has a high overhead cost. All market participants on that book must be notified of that change ahead of time, and prep their systems, retrain their models, and makers must understand the upcoming tick size change implications on queue competition. As the price of a token increases or decreases, the ratio of tick size to price has implications on price discovery, and the ability for market participants to express price preferences on an order book. With prop AMMs + routers, this all comes for free. Individual prop AMMs can adjust how they position their liquidity along prices at any time. Routers pick this up automatically and instantly. Prop AMMs that don't understand these dynamics get competed out. Prop AMM and router microstructure will lead competition on the quoted spread more. This is why queue isn't a concern for prop AMMs (and routers typically don't consider anything like it when routing). A larger portion of the spread that makers capture will be returned to retail as price improvement over time.