Order Book

Reminder

VTBC is not a transferable asset, as is VTBT. This decision is meant to drive trade through the VTBC runtime that enforces the price algorithm. If users were able to trade directly with each other, the price control mechanisms would not be effective. The algorithm is a crucial element of these mechanisms and complements the order book.

The team has created a First-in First-out (FIFO) peer-to-peer order book. This FIFO method enables a proper exchange order; in other words, the first person to list their VTBC sale is the first person to sell.

Additionally, the selling price is set by the runtime at the price of VTBC at that time. Perhaps unorthodox, it is pretty different from price discovery markets where individuals set the sell or buy price. Because the price does not go down directly, this FIFO order book model can act as a discount on the VTBC price for the next buyer.

For example, if a seller lists their tokens when the price of VTBC is $4 and sellers have listed before them, the previous sellers will have their sales filled first. If there is a lag of several hours between when the seller lists and when a buyer buys, the buyer will get a discount because the price goes up each hour. This incentivizes buyers to buy at a lower rate and makes sellers not likely to remove their sell order because they don’t want to lose their place in the line. This offers a unique model for getting VTBC lower than the current price.

This FIFO system is used to help maintain liquidity in the system, but more importantly, manage the price of VTBC.

You may consult our White Paper for a complete reference of this whole section at https://bit.ly/vtbwhitepaper