baedrik / scrt-sealed-bid-auction Goto Github PK

Time to close is determined by Alice as t

• Alice (Creator of the auction) can end the auction before t
• Alice (creator), Bob or Charlie or any bidder (anyone) can end the auction after t

Other points:

• Accept bids after t, if auction hasn't been closed

Most sales to funds / long term holders are OTC deals that involve a price discount + lock-up period for the buyer. SecretAuctions can accommodate this process, which currently is trust-based.

This would be used in liquidation SCRT Ecosystem Fund to fund USD based grants or diversify the portfolio. Here's how this would work:

• Seller is selling X SCRT with a time_t lock up and Y% discount, in exchange for Y token (USDT, DAI, ETH, WBTC etc.)
• Buyers bid to purchase X SCRT with lock-up.
• The buyer also wants to earn staking income while their assets are locked up (they are unable to sell or move the purchased SCRT)

In order to accommodate for this, the auction contract would need to:

1. convert sSCRT to SCRT and stake it (can be single validator selection in the beginning)
2. Set a time after which the buyer address can undelegate the tokens from the validator if she/he chooses to

Next steps for secretAuction are:

1. Add a factory contract:
   This will allow the UI to keep track of open auctions very easily, rather than scanning the entire blockchain for all auctions.

2. Change min_bid price w/o closing the auction

3. Variable price bids:
   We need to find a way to make sure that min. prices doesn't stay out of the money. This creates a poor experience to only see auctions where you don't want to participate. The idea would be to first add variable price bids for the seller. I would create an auction and say I'm selling at marketprice, -1% below market price, +1% market price. The lowest bid can be updated periodically (every 100 blocks etc.)
   This also requires an oracle integration (see scrtlabs/SecretNetwork#697)

4. Auctions with a closing time (issue #5)

5. Seller anonymity (lowest priority)

Fixed price dark pools allows dark pool trading (no info on order book depth or trade sizes) at a fixed price

The goal is to signal trading interest around a price, without leaking too much info about the depth of the order book and also the depth of the trades. This is done in trading sessions (say every 6 hours) for a limited amount of time (say 15 minutues). There are two processes, 1) price setting, 2) trading.

Price setting for the session can be done in two ways:

• Participants submit desired prices and then contract takes the avg. (requires contract development) - for 10 mins before the session
• Price API submits the bid/ask prices in Binance and the contract sets the avg. (MVP design - requires a price orace)

One the price is determined, the session starts and the price is fixed for the session - for 10-15 mins. Traders start adding their orders (buy / sell amount) in a secret contract. These inputs are private. Secret Contract creates an orderbook just based on quantity. Orders are matched on a first come / first serve basis. This process leaks no information about trade sizes or the interest to buy / sell at a given price.

The whole idea revolves around letting the market know that for this 10-15 minute window, there’ll be liquidity at a given price.

Steps:

1. Create a command to change the min. price of an auction
   Current approach to changes to min and existing bids
   If the min_price changes we keep any valid bid valid. This means if the min was 5 and Bob bid 6, and Alice increased min bid to 8 and there are no new bids, Bob wins the auction at 5
   Note: get feedback on this

2. Price oracle integration - to be detailed

Alice comes to the website and starts an auction

• Alice determines the contract address for the asset they want to sell and what they want to receive in return,
• Alice determines a minimum bid they will accept.
• Alice ends the auction manually: No end date or time set. Alice will choose to close it at some point, We need to communicate that in the UI at the moment

The UI should show all auctions in a list - like a landing page

Bob goes over the list of open auctions to bid

• Bob chooses an option - he will query the asset being sold, asset accepted on the auction, status (accepting_bids-tokens_are_consigned/accepting_bids-tokens_are_NOT_consigned/closed)
• Bob can make a bid
• Bob can remove a bid (Bob can only have 1 bid per auction)
• Bob can make a new bid - this will keep the highest bid amount and discard the lower one. If it's a duplicate bid, Bob doesn't

Alice closes to the website and starts an auction

• Alice will close the auction by calling a function, Alice will be shown the winning amount (she doesn't know the bidder),or is shown a message if the minimum bid threshold is not met
• If there are no active bids, Alice can decide to cancel the auction and get her tokens back or keep the auction open
• Bob XXX - WIP

It would be helpful to do the following for the CLI errors / user commands

Bob's bidding in an auction

• Insufficient funds (Low Priority):
  
  We can prompt you have 0 balance and the minimum bid amount is 0.115