Matching Engine
The algorithm that pairs buy and sell orders in exchanges based on rules like price-time priority.
What is Matching Engine?
Matching engines process orders at high speeds; centralized ones on Binance handle millions per second, while decentralized variants on DEXs use blockchains. In CLOBs, they enforce FIFO at each price level.
Hybrid models like HollaEx combine CEX speed with DEX security, optimizing latency via AWS.
In DeFi, engines on dYdX or Injective support perpetuals, matching orders off-chain for efficiency before on-chain settlement.
Related Terms
Oracle (Prediction Market)
A trusted source that provides off-chain data to resolve the outcome of a prediction market contract on a blockchain.
Spot Price
The current market price at which a digital asset can be immediately bought or sold.
Token Pair
A combination of two digital assets in a DEX liquidity pool, enabling direct swaps between them via AMM mechanisms.
Treasury Bonds (T-Bonds)
Long-term U.S. government debt securities with 20- or 30-year maturities, paying semiannual fixed interest.
Whale
A large investor or entity holding a substantial amount of a digital asset or capital, capable of influencing market prices due to their significant holdings.
WAGMI
An acronym for "We’re All Gonna Make It," expressing optimism and camaraderie in the digital asset community about achieving financial or project success.