
PANews|Aug 22, 2025 15:43
[Jump Crypto Proposes DFBA Mechanism to Address Challenges of Traditional CLOBs on Blockchain]
The research team at market maker Jump Crypto has 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 blockchain.
It is reported that CLOBs rely on continuous matching and time-priority mechanisms, which lead to latency arbitrage, MEV (Miner Extractable Value) issues, and adverse trading liquidity, thereby increasing market trading costs.
DFBA conducts two independent auctions every 100 milliseconds, categorizing orders into Maker and Taker groups, and completes transactions at a single fair clearing price. This mechanism eliminates time-priority advantages, avoids competition among liquidity providers, and shifts the focus of competition from speed to price and size.
Compared to traditional designs, DFBA can offer tighter spreads, deeper liquidity, and protection for natural traders from latency 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, providing market participants with a fairer and more efficient trading environment.
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