Deep Tide TechFlow news, on August 23, market maker Jump Crypto's research team published a proposal for a new trading mechanism called Dual Flow Batch Auction (DFBA), aimed at addressing 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 latency arbitrage, MEV (Miner Extractable Value) issues, and adverse trading liquidity, which increases market trading costs.
DFBA conducts two independent auctions every 100 milliseconds, dividing orders into Maker and Taker groups, and completes 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 is able to provide tighter quotes, deeper liquidity, while protecting natural traders from the impacts of latency arbitrage and MEV reordering. Jumpcrypto believes that this design inherits the advantages of previous trading models, such as continuous liquidity and auction fairness, while avoiding disadvantages like high slippage and liquidity fragmentation, providing market participants with a fairer and more efficient trading environment.