Hot take: Toxic order flow in DeFi is less about the orders being inherently "toxic" and more about how the venue processes and interacts with them. A well-designed, robust, and efficient DeFi venue can significantly reduce the negative impact of various order types, effectively "detoxifying" the trading environment for its users and liquidity providers. The most advanced and highly profitable DeFi venues, such as DEXs and aggregators, will treat these flows as crude inputs that can be refined via mechanisms like App-Specific Sequencing(see @atlasevm), channeling them into productive flows that strengthen the market for everyone.
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