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Ithaca Protocol
@ithacaprotocol
Ithaca employs a Frequent Batch Auction (FBA) mechanism to match orders across multiple order books featuring different products and maturities. FBAs run every 15 seconds, preventing any type of front-running or MEV, enabling seamless handling and synchronized execution of multi-leg linked/conditional orders. FBAs offer significant advantages over traditional Continuous Limit Order Books (CLOBs) for users:
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Ithaca Protocol
@ithacaprotocol
1/ Enhanced Efficiency Frequent batch auctions consolidate orders and execute them at regular intervals. This reduces order fragmentation, enhances price discovery, and provides a more efficient trading environment.
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Ithaca Protocol
@ithacaprotocol
2/ Reduced Market Manipulation FBAs defend against high-frequency trading (HFT) tactics by neutralizing the speed advantage. This levels the playing field and prevents unfair trading practices like front-running and latency arbitrage.
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Ithaca Protocol
@ithacaprotocol
3/ Mitigated Operational Risk FBAs minimize operational risks such as order collisions and imbalances. Batch execution ensures simultaneous processing, reducing vulnerabilities like front-running and enhancing market stability.
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Ithaca Protocol
@ithacaprotocol
4/ Improved Liquidity Concentrating trading activity in time-bound intervals fosters deep liquidity. FBAs create a vibrant market environment where trades are executed efficiently, minimizing market disruptions.
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Ithaca Protocol
@ithacaprotocol
5/ Institutional Recognition FBAs are increasingly recognized by market stakeholders for their positive impact on market quality, fairness, and transparency—hallmarks of a robust and future-ready trading system.
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