Disclaimer
This is an In Progress post. It is incomplete and of poorer quality than my other posts. It’s an experiment in encouraging me to publish more often.
A bonding curve makes the behaviour of an AMM completely predictable but this predictability has a key weakness.
If an attacker finds an edge cases in the bonding curve’s behaviour they can trick the AMM into coughing up all of the LP’s tokens.
An order book style market is different in that it depends on the distributed “computation” of all its traders for price discovery. Therefore, it is way more unpredictable.
Thus, order book markets are inherently immune to this kind of attack.