> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gtfo.vc/llms.txt
> Use this file to discover all available pages before exploring further.

# CLOB DEX

The 1st DEX is a central limit order book (CLOB) decentralized exchange.

Trading on 1st happens through markets where mirror tokens are paired against USDC. Mirror tokens are on-chain assets that represent upcoming token unlocks from private-market allocations. As vesting progresses, mirror tokens are burned and the underlying tokens are delivered to holders through drops.

Each listed market corresponds to a specific project and vesting schedule, and trades reflect exposure to future unlocks rather than spot supply.

### **Why a CLOB**

Mirror tokens require precise and transparent pricing.

Because mirror tokens represent time-based exposure to future token unlocks, pricing must reflect vesting risk, remaining time, and market demand. A CLOB allows traders to place explicit buy and sell orders at specific prices, enabling continuous price discovery through visible bids and asks.

This structure is better suited for vesting-based assets than AMMs, where prices are derived mechanically from pool balances rather than expressed directly by market participants.

### **What this enables on 1st**

Using a CLOB allows 1st to support:

* Transparent price discovery through visible bids and asks
* Deterministic execution based on price and time priority
* Deep liquidity across multiple price levels
* Professional market making alongside user orders

All participants interact with the same order book under the same rules.

### **Decentralized settlement**

Although trading uses a central limit order book, settlement happens on chain.

Users retain self-custody of their assets, trades settle deterministically through smart contracts, and ownership updates occur automatically. The CLOB defines how orders are matched, not who controls assets.