Definition ∞ A Batch Auction is a trading mechanism where multiple orders are collected over a specified time interval. These orders are then executed simultaneously at a single clearing price. This method differs from continuous trading by consolidating transactions. It is designed to reduce market manipulation and ensure equitable pricing for all participants.
Context ∞ Batch auctions are gaining prominence in decentralized finance (DeFi) to mitigate issues such as front-running and Maximal Extractable Value (MEV). Their application in token distribution and certain decentralized exchange models is a current topic. Observing their effectiveness in achieving fair and transparent price discovery is a key development.
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