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Individual orders are grouped together into a batch and executed at the same time. The same clearing price is assigned to all orders within one batch. Trading in batch auctions helps guarantee fair price discovery.</p>\n<p>Batch auctions are used in <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-blockchain/">blockchain-based markets</strong></a> to prevent maximal extractable value (MEV) when dealing with <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-initial-token-offering-ito/">initial token offerings</strong></strong></a>, <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-liquidation/">liquidations, or illiquid asset buybacks. MEVs can affect the additional fees of the transaction. Therefore, utilizing batch auctions reduces the vulnerability to MEV.</p>\n<p>Normally, batch auctions only operate on a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-pair/">single token pair</strong></a>. 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These services can be integrated as part of open banking.&nbsp;</p>\n<p>To start developing a BaaS model, digital banking of third-party providers pay a certain fee to be granted access to the BaaS platform. The financial institution can then open its APIs to the third-party provider. The TPP receives access to the data and the system required to build banking products, tools, and white label banking services.</p>\n<p>Legacy financial institutions are also able to utilize BaaS platforms to offer their services online. 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Crypto Terms: Letter B

What is Basket?

Basket MEANING:
Basket - a service that allows traders to manage a collection of cryptocurrencies as a singular asset.
Easy
1 minute

Let's find out Basket meaning, definition in crypto, what is Basket, and all other detailed facts.

A basket, also known as a crypto index fund, is used in the context of crypto to describe a collection of cryptocurrencies that are being managed as one singular asset. This reduces the need to closely monitor individual currencies.

Baskets started gaining prominence in 2018. Around this time, it became possible to group several different coins and offer a single separate token during trading. Users could list the token on an exchange platform and trade it as they would with standard cryptocurrencies.

The initial target group of baskets was newcomers to the trading field. The technology has since been developed to provide convenient functionality for large-scale investors. Each basket service offers unique functionality.

Some baskets allow users to manage ERC-20 tokens, while others include a variety of currencies created using the Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus mechanisms.

Some crypto index funds are able to track multiple companies that interact with cryptocurrency at once. The JPMorgan Cryptocurrency Exposure Basket offers this model instead of grouping several cryptocurrencies into a single token. The fund holds Nvidia, PayPal, and Riot in its basket. 

The percentages of the assets in a single basket may vary. In some cases, one or two assets may hold a significantly higher percentage than others.