Gnosis Auction
Tokensoft provides support for the Gnosis auction. Customers can now use Tokensoft as a compliance layer to perform KYC and manage any associated paperwork. The Gnosis Auction is a platform for conducting fair, transparent, and decentralized token price discovery.
Gnosis Auction enables Batch auctions for everyone, it aims to provide a resilient and easy-to-use tool that enables anybody to auction ERC-20 tokens on Ethereum.
In order to begin the process, an ERC-20 token must be already deployed. This can either already be deployed by the customer or if assistance is needed with deployment and security audit, please contact your Tokensoft Account Representative.
Batch Auctions
Batch auctions are a fair pricing method that has been battle tested in traditional finance. Some of its uses include everyday open auctions in the NYSE, Direct listings, and IPOs (Google being the most prominent).
Gnosis Auction’s mechanism adds few major benefits over existing approaches available today on Ethereum like fixed price sales, Dutch Auctions, IBCO or Balancer LBP. Gnosis Auction is designed to be front running resistant, offers user friendly bidding experience, enables users full control over their participation price, and offers a fair single clearing price.
Benefits
In order to undertake a Gnosis Auction, a pre-determined amount of tokens must be selected to be supplied to the Gnosis Auction contract. A healthy amount to be distributed is about 10 percent.
A minimum token price must be selected, you can think of this as a number similar to the reserve price on Ebay. It is the minimum price that you're willing to accept as the clearing price.
The duration of the sale must be long enough to allow for all participants to enter. Participants will be able to place bids throughout the duration of the auction, so you'll want something that is long enough to be supported by a strong marketing campaign, such as a few days to a few weeks but not too long that the auction drags on. The average time that we see sales stay open for is a few weeks to a month. This usually provides a compressed enough time window to create a sense of urgency but also provide people with enough time to get comfortable with the process.
Gnosis Auction's are currently only supported on the Ethereum network.
Front running (MEV) resistant - Gnosis Auction prevents front running bots from extracting value, by not allowing them to purchase tokens early and sell later at a higher price. In contrast to AMM solutions, the auction mechanism does not allow miners to extract value from users by using sandwich attacks.
- User friendly bidding experience - In contrast to other mechanisms, Gnosis Auction enables bidders to participate at their leisure, without needing to time their activity in order to get the desired price.
- Full control over participation price - One of the advantages of Gnosis Auction is the bidder’s ability to limit the price at which they are willing to buy. In contrast, IBCO requires the bidder to commit to participation without knowing the token’s eventual valuation.
- Fair pricing - All bidders will receive the same clearing price, which is determined when that auction concludes.
- Order Settlement - Auctions can settle more than 10,000 bid orders with the same settlement price.
- Permissionless - Auctions can be deployed without the need to ask for permission.
- Composable - Auction setup is modular enough to satisfy many different use cases’ needs.
- Gnosis Auction is built on the proven success of past blockchain-based auction developments.
Last modified 1yr ago