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More auctions are better than less auctions.
DBFA gives a tangible example of why shorter blocktimes matter. Don’t believe the cope from slow global consensus chains.
Let’s give an extreme example:
Say a DEX announces they’re going to implement DBFA but only run an auction ever 24 hours. So they let the orders pile in, and on the last oracle update at noon everyday – they clear the book with the auction fill prices. Cool, you got filled! Come back tomorrow for the next update.
And sure, everybody got filled “fairly” as per the price at that moment, but is that really interesting to traders? One event a day? Nope. That’s the opposite of high frequency trading!
And if you took it down to a more realistic level: let’s compare an L1 with 100ms blocktimes (A) versus an L1 with 400ms blocktimes (B).
Essentially DEX on A can run 40 auctions in a 4 second period, while the DEX on B will only run 10.
Which will mean A is just a far better experience for traders as their models will get their fill report, make a new decision based on that auction event, and reload orders for the next auction. Over and over and over.
And that auction differential adds way up over a longer period for their PnL to the point traders and liquidity will migrate to DEX on the faster L1.
So yeah, more auctions are better than less auctions – and shorter blocktimes are better than longer ones.
Time for more (fair) auctions.
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