DFBA made simple
What is DFBA?
DFBA is a new way of trading crypto on-chain. Instead of trades happening one by one, all trades in a block are grouped together and cleared at the same price.
Think of it like a supermarket: instead of people racing to the cashier, everyone puts their shopping list in a box, and at the end of the minute the shop checks all lists and gives everyone the same fair price. No racing, no bots cutting the line.
Why use it?
On blockchains, most trading happens in two ways:
- AMMs: easy to use but prices can be bad.
- Order books: precise but bots and fast traders can cheat.
DFBA mixes the best of both. Everyone is treated fairly, and the fight is about who gives the best price, not who is fastest.
How it works (super simple)
- You place an order → say how much you want to buy/sell, and the worst price you accept (slippage).
- Orders are collected → during the block, all orders go into a basket.
- Auction runs → at block end, the system checks the real market price (oracle — Pyth ) and sets one fair price for everyone.
- Trades happen → all trades clear at once. If the market moved in your favor, you may even get a better deal.
Why beginners should care
- No front-running: bots can’t jump ahead.
- Fair price: everyone gets the same deal.
- Better fills: sometimes you buy cheaper or sell higher.
- Safe fallback: even if price feeds lag, trading keeps going.
Quick Q&A
What if my slippage is too strict?
Your trade won’t go through. That’s protection so you don’t pay a bad price.
Who joins the auction?
Normal traders, market makers, and solvers. They try to offer better prices, not faster clicks.
Who pays for the price improvement?
It’s covered by competition between liquidity providers. You don’t pay extra.
Remember this
- DFBA = group trades, one price for all.
- Fairer than AMMs or order books alone.
- No racing bots. Focus is on price, not speed.
- You can sometimes get a better deal than expected.
DFBA on Fogo is a new way of trading: all orders are grouped, prices come from an oracle, and traders compete on price instead of speed. This makes trading fairer, safer, and stronger even when the market is busy.
Lesson simplified for beginners. Inspired by DFBA research and Ambient implementation.
Check this article made by Ambient team to dive deeper.
Final Quiz
Please select or write the correct answer.
