Orderbook and Tick System
Crescent Network introduce the concept of an orderbook for versatility and visibility. For a coin pair, a single orderbook is given. The users can submit both limit and market orders and transparently observe existing limit orders on orderbooks.
Crescent Network introduces tick system alongside with enabling order book feature. Tick system allows better data and calculation efficiency, and also orderbook standardization for users who are familiar with traditional orderbook system. The size of tick can be adjusted by a governance proposal.
Recent enhancements in blockchain technology have allowed developers to build scalable, automated utilities upon trustless infrastructure. One utility class that has evolved significantly is Automated Market Makers (AMM).
In Crescent Network, a liquidity pool becomes AMM so that it allow investors without significant capital or financial knowledge to invest in market-making opportunities. The liquidity pool of a coin pair automatically makes orders in the orderbook of the coin pair by CPM (Constant Product Model).
Relationship between a liquidity pool and orderbook
As illustrated above, LP provides who deposit two different types of coins into the pool while the liquidity in the pool is automatically converted to the orders to be submitted to the orderbook.