PANews August 22 reported that the market maker Jump Crypto research team published an article proposing a new trading mechanism called Dual Flow Batch Auction (DFBA), aimed at addressing the challenges faced by traditional Continuous Limit Order Books (CLOBs) on the blockchain.
It is reported that CLOBs rely on continuous matching and time priority mechanisms, which leads to delayed arbitrage, MEV (Miner Extractable Value) issues, and adverse trading liquidity, increasing market trading costs.
DFBA conducts two independent auctions every 100 milliseconds, dividing orders into Maker and Taker groups, and completing transactions at a single fair clearing price. This mechanism eliminates time priority, avoids competition among liquidity providers, and shifts the focus of competition from speed to price and scale.
Compared to traditional designs, DFBA can offer tighter quotes, deeper liquidity, while protecting natural traders from the effects of delayed arbitrage and MEV reordering. Jump Crypto believes that this design inherits the advantages of previous trading models, such as continuous liquidity and auction fairness, while avoiding drawbacks like high slippage and fragmented liquidity, providing market participants with a fairer and more efficient trading environment.