[3 Differences Between Dango and Other Perp DEXs] Larry (@larry0x), the founder of Dango (@dango), tweeted about 3 key differences between 'Dango' and existing perp DEX products. (Additionally, while these 3 differences are not inventions by the Dango team, they expressed confidence that by combining these three, they will create the best product.) The FBA (Frequent Batch Auctions) method I previously explained on X, Cross-collateralization, and AMM vault (Automatic Market Making Vaults) are the three differences Larry mentioned. Now, I will briefly explain each of the three differences. ㅡㅡㅡ 1. FBA (Frequent Batch Auctions) The FBA method refers to a mechanism that collects orders existing within a short time frame on-chain and executes them in a batch auction format. Unlike the traditional CDA (Continuous Double Auction) method, which processes orders as they come in sequentially, the FBA method does not execute orders immediately upon arrival but instead collects them over...
Unlike some others, we give credit where it's due @dango's 3 main differentiating features, we didn't invent them; although we're confident we are the best in combining them into a strong product: 1. Periodic auctions as the order matching mechanism, for protecting traders against the plaguing issue of arbitrage flow; was proposed in the academia by Budish et al. in 2015, implemented in TradFi by CBOE Europe, and in DeFi by @injective since 2021. 2. Unified trading account that brings spot and perp positions under a single unified margin system, for enhanced capital efficiency, and making possible novel trading strategies; was popularized by the CEXs @Bybit_Official and @Backpack. In the decentralized world, a limited form was first implemented by @GearboxProtocol and later by @mars_protocol. 3. Automated market making vaults that will act as guaranteed liquidity under volatile market conditions, and bring new yield opportunities to retail investors; was invented by...
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