Spot Central Limit Order Book (CLOB)
MuchFi’s Spot CLOB provides a traditional central limit order book for spot trading in mature token markets.
The system maintains two order lists:
- Bids – Buy orders
- Asks – Sell orders
Each order specifies a limit price and order size. The matching engine continuously evaluates incoming and resting orders, executing trades whenever compatible prices are found.
Order Matching
The Spot CLOB follows a strict price–time priority rule to ensure fair and deterministic execution:
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Price Priority
Orders with the most competitive prices match first:
- Highest bid prices
- Lowest ask prices
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Time Priority
When multiple orders exist at the same price, the earliest submitted order is filled first.
This approach guarantees fairness, transparency, and efficient price discovery across all supported markets.
Why CLOBs Excel for Mature Tokens
Central limit order books offer several advantages for established, high-liquidity assets:
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Efficient Spread Discovery:
Market makers compete directly within the order book, resulting in tighter bid–ask spreads and improved execution quality for traders.
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Precision Pricing:
A dense ladder of limit orders across price levels enables precise price discovery, surpassing the resolution of AMM curve-based pricing.
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Better Execution for Large Trades:
Deep order books reduce slippage on large trades. Unlike AMMs, where price impact increases nonlinearly with trade size, CLOBs can absorb significant volume more efficiently.
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Advanced Liquidity Provision:
Sophisticated market makers provide consistent depth and responsive pricing, bringing institutional-grade liquidity to onchain markets.
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Event-Responsive Pricing:
Unlike fixed AMM formulas, CLOB prices adjust instantly to new information, market events, and order flow, ensuring prices always reflect current conditions.
