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Jump Crypto proposed the DFBA mechanism to address the challenges of traditional CLOBs on the Blockchain.
PANews August 22 news, according to the market maker Jump Crypto research team, a new trading mechanism 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 a time priority mechanism, 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, completing transactions at a single fair clearing price. This mechanism eliminates the priority of arrival time, 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.