Central Limit Order Book

What is Central Limit Order Book ?

A Central Limit Order Book (CLOB) is a market mechanism where all buy and sell orders are centralized into a single order book. These orders are organized by price and time of placement, fostering a transparent and efficient trading environment.

Why Use CLOB for Onchain Prediction Markets?

Transparency and Trust

With all orders publicly displayed, participants can rely on the fairness and transparency of the market. Order book visibility ensures that users can make informed decisions without concerns about third-party manipulation. Trust is crucial in prediction markets, where participant confidence is key.

High Security

Leveraging blockchain technology ensures that data and transactions are secure from attacks and fraud. Transactions are executed automatically via smart contracts, reducing the risk of third-party interference.

Accurate Pricing

CLOB facilitates precise order matching on the order book, unlike Automated Market Maker (AMM) models. This results in significantly lower price slippage for orders.

Low Transaction Fees

The automation and transparency of blockchain technology help minimize intermediary costs, resulting in lower transaction fees for users.