Why auctions

Liquorice design uses auctions to achieve three main goals:

  1. Eliminates MEV by design which improves prices for users as there are no miners or hft players trying to front-run a regular taker

  2. Creates open competition among market makers to find the best price for users during auction

  3. Makers are able to run various pricing strategies and secure profits for themselves with high degree of confidence.

Trading on Liquorice provides advantages over other DEXs and synthetic asset platforms. A unique design prevents LPs from suffering from impermanent loss, which is always possible with a Swap-style DEX. Auctions will help to separate uninformed flow from toxic flow and attract more institutional participants. They boost liquidity and reduce trade friction by creating competition among market makers looking to trade with the uninformed flow.

Liquorice bridges the gap for non-crypto native users, allowing them to interact with trading protocol in a manner that is similar to their regular trading experience on centralized platforms.

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