DEX

On many exchanges, centralised and decentralised alike, an order can be observed before it is executed. A party that sees it first can trade ahead of it at the better price. This practice is known as front-running, and it drew wider attention once MEV bots, programs that profit from the order of transactions, began doing it at scale on decentralised exchanges [2].

The DEX design is intended to prevent this. Each order is encrypted, and its key is split across ten independent nodes, six of which are needed to open it. No single node can read an order before its place in the queue is fixed. Trading would take place on a separate chain with its own nodes, which periodically records its state on TensorCash [1].

References

1. [1]Decentralised Exchange Protocols whitepaper.tensorcash.org/whitepapers/DEX_Whitepaper2-modern.pdf
2. [2]P. Daian et al., Flash Boys 2.0: Frontrunning, Transaction Reordering, and Consensus Instability in Decentralized Exchanges, 2019.arxiv.org/abs/1904.05234