CoinVoice has recently learned that the Jump Crypto research team has proposed a new trading mechanism called Dual Flow Batch Auction (DFBA), designed to address the challenges of traditional continuous limit order books (CLOBs) on the blockchain.
It is reported that CLOBs rely on continuous matching and time priority mechanisms, leading 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 provide tighter quotes, deeper liquidity, while protecting natural traders from the impacts 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 liquidity fragmentation, thus providing market participants with a more equitable and efficient trading environment. [Original link]
