People keep talking about HertzFlow | Mainnet Arc🎲's RFQ model. But there is one question that deserves an answer and of which is simple: Why use an RFQ instead of the normal order book most traders already understand? And to answer this question, we first need to understand what... an order book actually does. #HertzFlow A thread 🧵 and a Video 🎥show more

A normal order book is basically a list of buy and sell orders waiting to be matched. If you want to buy, you need a seller on the other side willing to sell at an acceptable price. If few people are trading, your order can wait and this widens the gap between buy and sell prices.

HertzFlow uses an RFQ instead. RFQ means Request For Quote. Instead of placing an order and waiting for someone on the other side to match it, you’re essentially asking: “I want to trade this amount. What price can I get?” The system then provides a quote for that trade.

But this creates another important question: Where does that price come from? This is where the oracle comes in. An oracle sounds technical, but the basic idea is simple: It brings reliable information from outside the blockchain into the blockchain so smart contracts can use it.

Think about checking a stock or forex price on a trading app. You can see it on your screen. A smart contract cannot open an app and look. It needs a reliable data source to provide that market information. The oracle is that feed.

So you can think of the process like this: Market data → Oracle → Price reference → RFQ → Execution The oracle helps provide the market price reference. The RFQ uses that information to produce a quote for the trade. Liquidity is then available to support the execution.

So I wouldn’t simply say: “RFQ is better than an order book.” As it solves the same liquidity and execution problem in a different way. And for leveraged markets involving assets like stocks and forex, that distinction becomes especially interesting when you are bringing those markets on-chain.

That’s the part of HertzFlow i think is worth understanding beyond the usual CT shilling. If you want to dig deeper: Official site: Telegram: Follow @Hertzflow_xyz and keep an eye on what they are building around on-chain leveraged markets.

@Hertzflow_xyz What's the most interesting feature that keeps you going on HertzFlow Chuzzy?

@Hertzflow_xyz Fact that the execution is seamless and at a good pricing

@Hertzflow_xyz order books are old school this fits onchain better

@Hertzflow_xyz Exactly Syfer. This knows what’s up

@Hertzflow_xyz Your video is very explanatory and detailed

@Hertzflow_xyz RFQ makes sense here because the LP pool is always the other side of the trade and the oracle sets the price

@Hertzflow_xyz Yes, RFQ, makes the execution independent of whose buying when one wants to seeel or whose selling when one wants to buy Just request and it is accomplished

@Hertzflow_xyz great breakdown!

@Hertzflow_xyz RFQ makes sense for markets where waiting for a matching order can create unnecessary friction.

@Hertzflow_xyz The developers understands what traders desire and are delivering it

@Hertzflow_xyz how do you handle concurrency bottlenecks during high volume transaction peaks?

@Hertzflow_xyz Understanding the difference makes HertzFlow’s RFQ approach much easier to evaluate.

@Hertzflow_xyz Interesting point about the RFQ model compared to order books

@Hertzflow_xyz Order books need a counterparty waiting; RFQ just asks for a price and gets one, so thin markets don’t stall.

@Hertzflow_xyz RFQ shines when liquidity is thin so instant oracle pricing actually makes sense

@Hertzflow_xyz The oracle sets the reference, the quote comes back immediately, and execution doesn’t depend on enough resting bids and asks being present for stocks or forex.

@Hertzflow_xyz hertzflow 🔥

@Hertzflow_xyz Order books serve a specific function, clarity matters.

@Hertzflow_xyz the advantages of rfq over order books are worth discussing

@Hertzflow_xyz That’s the right question to ask. An RFQ only makes sense if it solves something the order book struggles with, so understanding the trade-off is more useful than simply calling it a “better” model.

@Hertzflow_xyz Hey there Seems you got some curiosity about RFQ models and HertzFlow

@Hertzflow_xyz Instant quotes from oracle-fed data could make onchain stock trading smoother.

@Hertzflow_xyz understanding what the order book is solving makes it much easier to see why an rfq model can make sense for certain trading environments.

@Hertzflow_xyz What advantage does HertzFlow’s RFQ model have over an order book for larger trades?

@Hertzflow_xyz was skeptical about rfq till last week tbh

@Hertzflow_xyz For on-chain stocks and forex leverage, that setup makes more sense than hoping the book stays deep.

@Hertzflow_xyz Solid explanation, love hertzflow infrastructure

@Hertzflow_xyz This is the right question because RFQ makes more sense with context.

@Hertzflow_xyz Understanding the execution model makes it easier to see why RFQ can be useful

@Hertzflow_xyz The permissionless angle is the interesting part.

@Hertzflow_xyz Every new lesson can strengthen tomorrow's approach.

@Hertzflow_xyz Traders care far less about passive depth than knowing their fill price cannot be frontrun

@Hertzflow_xyz RFQ makes a lot of sense for thin markets because you get a quote instead of waiting on a match.

@Hertzflow_xyz Video link isn't loading for me

@Hertzflow_xyz Comparing RFQ with the order book is actually a useful way to explain it

@Hertzflow_xyz Ok fine the video actually explained it well

@Hertzflow_xyz Spill it chuzzy

@Hertzflow_xyz Looking forward to seeing how it unfolds. 🔥