🚁Hybrid Order-matching Engine

Hybrid Order-matching Engine

Hibit adopts a Hybrid Order-matching Engine that enables users to obtain the best execution prices, whether they choose Orderbook or Swap. Hibit's Orderbook and Swap represent two separate liquidity pools. Orderbook follows the traditional order book model, while Swap utilizes the AMM (Automatic Market Maker) V2 model. Hibit splits the liquidity from these two pools and cyclically matches the best execution prices from both pools. Therefore, users will receive the optimal execution price regardless of the chosen trading method. To provide users with a clear view of the combined liquidity from both pools on the Orderbook, the liquidity from Swap is algorithmically overlaid onto the current order depth of Orderbook. This means that users see the real depth of orders combined with the virtual depth mapped from the liquidity of Swap.This hybrid approach accommodates the trading preferences of users in both methods while also facilitating easy market-making support for project teams through AMM protocol.

Combining AMM & Orderbook

An Automated Market Maker (AMM) transforms the traditional model of buy and sell orders in an orderbook market into a system where two assets are pooled together, each having a value in relation to the other. When one asset is exchanged for the other, the relative values of these two assets fluctuate, leading to the establishment of a new market rate for both. In this mechanism, a buyer or seller conducts transactions directly with the pool instead of engaging with specific orders placed by other participants. Hibit AMM advances the DeFi ecosystem by offering liquidity providers greater capital efficiency, control, and flexibility and implementing new functionalities not achievable with the current AMM solutions. Please refer to the Rewards Program for further details.Hibit adopts a comprehensive approach to liquidity by combining the strengths of AMM and orderbook. This ensures optimal liquidity for users and addresses common issues such as trading slippage often observed in traditional AMMs.