Auction page

Auction Recap

The auction mechanism in the Byzantine Finance protocol is designed to match stakers with operators fairly and efficiently, balancing profitability and stability. Operators submit standing bids parameters that specify the price they are willing to pay per Validation Credit (VC) and the number of VC they wish to purchase. These bids are recorded on the blockchain and are ranked based on their Auction Score.

The Auction Score is influenced not just by the bid amount but also by the operator's reputation and the duration of their proposed operating period. This scoring system ensures that the protocol favors reputable and stable operators. Learn more: Deep dive into the Auction mechanisms.

Auctions are triggered whenever a new Distributed Validator (DV) cluster needs to be formed or when an operator leaves a cluster and needs to be replaced. The top bids are selected, and the corresponding operators are chosen to join the DV cluster.

For a detailed view of the auction mechanism, you can refer to the Byzantine Finance auction documentation.

Our app

To interact with the Auction contract, you can visit our dApp, where you'll find three main menus:

1. Ranking

   • This is the list of all pending bids. You'll see everyone's bids with all the necessary information to easily compare different bids and understand the ranking mechanism. Note that for each auction, the top 4 bids based on the auction score are selected, and each address can only occupy one of the top 4 slots.

2. Bid Preparation

   • Here, you can prepare your bid. Adjust the sliders to see live updates in both the ranking and your bids preview sections. This allows you to visually place your bid in the list and see the estimated price. Once you are satisfied with the parameters, you can click the "Bid" button to submit or the "Change Bid" button to update an existing bid.

3. Your Bids

   • This section shows all your bids and the preview of your next one. Similar to the ranking section but focused on your bids. Here, you can interact with each offer by clicking on the line to bring up the interaction menu: you can submit a new offer, update or remove an existing offer, or view the transaction on the explorer.