Bayes Market's trading engine combines a Central Limit Order Book (CLOB) with the Conditional Tokens Framework (CTF). This hybrid model provides a seamless and liquid trading experience, similar to a traditional exchange, while leveraging the security and transparency of a blockchain-native framework.
CLOB: A CLOB is an order-matching system that lists all open buy and sell orders for a market. We use a hybrid design where orders are matched off-chain for speed and zero gas fees on individual trades. The actual settlement and execution, however, are done on-chain, guaranteeing security and transparency.
CTF: This is the underlying smart contract that enables the tokenization of event outcomes. For any binary market, two types of tokens (e.g., YES and NO shares) are created. A core feature of CTF is the ability to "split" 1 BYUSD into one YES share and one NO share, or to "merge" one YES share and one NO share back into 1 BYUSD. This powerful primitive ensures that you can always enter or exit a full position without needing to find a direct counterparty.
At this point of time, we do not support the "Negrisk" function for categorical markets. We will launch this feature in the near future.