The new DFBA trading mechanism has emerged, promising to address the CLOB challenges on the blockchain.

On August 23, [区块律动], a market maker research team published a paper proposing 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 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: Maker and Taker, 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 can provide tighter quotes and deeper liquidity while protecting natural traders from the impacts of delayed arbitrage and MEV reordering. The research team 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, thus providing market participants with a fairer and more efficient trading environment.