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Continuous Auction

Definition ∞ A continuous auction is a market mechanism where bids and offers are submitted and matched continuously throughout the trading day. This system allows for constant price discovery and immediate execution of trades. It contrasts with batch auctions or call auctions that process orders at specific times.
Context ∞ Many decentralized exchanges (DEXs) operate under principles similar to continuous auctions, facilitating constant trading of digital assets. The efficiency and fairness of these continuous matching engines are paramount for liquidity and user experience. Discussions often revolve around mitigating issues like front-running and ensuring transparent price formation in these dynamic trading environments.

A central abstract structure, horizontally oriented, comprises myriad faceted blue crystalline forms, transitioning from dark indigo to vibrant azure. This represents aggregated transaction data within sharding segments, forming an immutable distributed ledger technology core. Four smooth, white opaque spheres, embedded at each end, signify validator nodes or digital asset anchors. Transparent, intersecting rings encapsulate the entire assembly, illustrating interoperability protocols and cryptographic primitives that facilitate secure cross-chain communication and consensus mechanisms within a decentralized network architecture.

→Bluff Bidding

→Exclusive Orderflow

→Adaptive Strategy

Game-Theoretic Model Quantifies MEV-Boost Auction Inefficiency and Strategic Latency Dominance

A game-theoretic model formalizes MEV-Boost auctions, demonstrating how latency and strategic bidding, not maximal value, drive block selection, quantifying auction inefficiency.