Order Book
To ensure a perfect decentralized trading experience, Spin offers a Central Limit Order Book model.
Quick summary: Spin utilizes single asset pools, wherefrom the liquidity proceeds to the Order Book for further execution of trades with its inherent security, speed, and reliable price discovery algorithms.
Unlike a wide variety of choices currently available in DeFi regarding financial instruments, Spin employs the Order Book trade execution model as opposed to AMM as a complementary liquidity pool facilitator. We combine the best of two worlds: decentralization on the one hand and established liquidity that permits an instantaneous execution of a trade on the other.
Spin’s implementation model of the on-chain Central Limit Order Book delegates the right to users to submit orders with constituents such as the size of a trade, price ranging, and the directional future of a derivative of the underlying crypto asset.
Additionally, the Order Book model also prevents frontrunning and sandwiching attacks, as the “ask” and “bid” will follow a deterministic model of generating orders.
Although Order Books are widely associated with centralization and governance, we introduce a non-custodial base for ordering. Unsupervised and invulnerable to tampering, deterministic algorithms eliminate pitfalls in trading and help enable fully automatic, intermediary matching orders algorithms between users.
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