Dfusion is a decentralized exchange that uses batch auctions and a multi-dimensional order book to set prices for asset pairs. Unlike Constant-Function Market Makers or traditional exchanges that maintain separate liquidity pools/order books for individual asset pairs, Dfusion aggregates all orders into a single multi-dimensional order book that consists of multiple different token pairs. It then uses a time-based batch auction to set cleaning prices for each token exchanged in a batch. Batch auction settlement prices can be used as an oracle service by projects seeking access to an on-chain oracle service.

Dfusion’s settlement times occur approximately every 5 minutes. All orders submitted before a batch is settled can be included in the final settlement. The auction accepts settlement proposals from anyone. Solutions are simply checked for validity and if they are β€˜better’ than existing solutions. If a solutions is judged to be β€˜better’ than another, it replaces the previous solution. All trades are finalized after 5 minutes.

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Pros / Cons
Pros Cons
Decentralized. Order book and auction process take place entirely on-chain. Settlement Speed. Batch trades settle approximately once every 5 minutes.