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 ‘better’ than existing solutions. If a solutions is judged to be ‘better’ than another, it replaces the previous solution. All trades are finalized after 5 minutes.