Warthog takes an innovative approach to DeFi in the sense that a hybrid setting of two liquidity sources (pool and order book) is considered and addressed mathematically optimally. Our [scientific research](https://github.com/CoinFuMasterShifu/FairBatchMatching/blob/main/FairBatchMatching.pdf) first describes this setup and proves existence and uniqueness of an optimal and fair order matching which operates batch-wise jointly on all orders such that the same price is realized for all buy swaps and all sell swaps. In particular no sandwich attacks are possible by design. This post is a high-level guide to how the Warthog DEX works in practice. It complements the [Fair Batch Matching paper](https://warthog.network/FairBatchMatching.pdf) and the [in-depth documentation](https://github.com/warthog-network/docs/blob/main/unique-features/hard-coded-defi/fair-batch-matching.md) by giving you the practical mental model and answering the questions that come up most often. Try it yourself at [warthog.network/defi-demo](https://warthog.network/defi-demo). ## The two kinds of liquidity in the Warthog DEX ...