PANews August 22 news, according to the market maker Jump Crypto research team, a new trading mechanism called Dual Flow Batch Auction (DFBA) has been proposed, 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 delayed 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 two groups: Makers and Takers, 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. Jumpcrypto 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, providing market participants with a more fair and efficient trading environment.
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