PANews reported on August 22 that the market maker Jump Crypto research team published an article proposing a new trading mechanism, Dual Flow Batch Auction (DFBA), which aims 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, which leads to latency arbitrage, MEV (miner extractable value) problems and unfavorable trading liquidity, increasing market transaction 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 arrival time priority, avoids competition among liquidity providers, and shifts the focus of competition from speed to price and scale.
Compared to traditional designs, DFBA offers tighter quotes and deeper liquidity, while protecting natural traders from latency arbitrage and MEV reordering. Jumpcrypto believes this design inherits the advantages of previous trading models, such as continuous liquidity and auction fairness, while avoiding drawbacks such as high slippage and liquidity fragmentation, providing a fairer and more efficient trading environment for market participants.


