Hybrid Order Book Mechanism
Omen maintains an independent buy/sell order book for each prediction market:
Limit orders submitted by users enter the order book and are matched by price-time priority (best price first, then earliest submission).
Matching Process: Incoming orders are automatically matched with opposing orders; unmatched portions remain as open orders, providing liquidity.
AMM Backup Mechanism: If order book depth is insufficient, orders are automatically routed to the AMM pool for execution, ensuring trades always complete.
Price Discovery: Real-time display of bids (Bid) and asks (Ask), forming tight bid-ask spreads, enabling professional traders to earn spreads.
Differences Between Limit Orders (CLOB) and AMM Market Orders
Execution Method
Orders wait for matching; executed only at the specified price or better
Instant execution at the current pool price
Price Control
User fully specifies the price (or better)
Accepts the current market price; potential slippage
Liquidity Role
Provides liquidity (Maker); can earn spreads
Consumes liquidity (Taker)
Applicable Scenarios
Precise entry/exit, liquidity provision, large order splitting
Quick trades, small orders, instant execution
Risk/Advantage
May remain unfilled for a long time, but tighter spreads and lower slippage
Always executes, but large orders may face high slippage
Fee Impact
Makers typically receive lower fees or rebates
Takers pay higher fees
Limit orders suit professional users seeking the best price, while AMM orders ensure convenience for newcomers and urgent trades. The combination allows Omen to maintain high availability in low-liquidity markets and professional-grade depth in high-activity markets.
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