What is the difference between CLOB and AMM in prediction markets?

A Central Limit Order Book (CLOB) matches buy and sell orders from real users. It delivers the tightest spreads and best prices but requires existing liquidity to function. An Automated Market Maker (AMM) uses algorithms to provide instant liquidity, so users can trade even when there is no counterparty. The best approach is a hybrid model: start with the AMM to guarantee liquidity from day one, then seamlessly transition to the CLOB as organic trading volume grows. Vinfotech's prediction market platform ships with both engines and lets operators configure the transition threshold.