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Design: Dr. Gavin Wood
By Dr. Gavin Wood, Fatemeh Shirazi, Alistair Stewart
first level titleAuctioning Parachain SlotsWe excluded the "bid auction" scenario because some of these bids were submitted using smart contracts. The use of smart contract quotations is also out of our consideration of promoting a fair and transparent auction process. We ruled out a closed auction format, and we didn't want to apply a "possible auction process". In the end we decided to use
candlestick auction
, and uses a retroactive closing mechanism.
After opening the auction within a fixed window, bidders can post bids for 1-4 lease periods, each of 6 months. Bids become blocks of transactions. Bidders may submit multiple bids. Bidders are submitting bids for lease periods that should be contiguous, or adjacent to other bidders' bid lease periods.
For 4 lease periods, it may also be divided into 10 sub-ranges. We store each winner for the 10 time ranges in the specified data structure. We need to ensure that there is no gap between the new bid and the winning price of the same bidder in another interval. If a certain bidder is currently the top bidder for a certain period of lease, such as lease period 1-2, then he cannot bid for 4, unless someone beats him with a higher price in lease period 1-2.
If the bid is not won, the data block will be ignored. During this lease period, a new successful bidder will be updated and a new successful bid price will be calculated. The new winner is calculated by selecting a combination of bids, multiplying the number of lease periods bid by all bids times the product of bids for each lease period, the highest being the winner. Once the bid is added to the block, the amount of the bid will be temporarily withheld.
For example, a group of auctioneers wish to bid on some card slots. Bidder 1 submitted (1-4, 75 DOT), expressing that he wants to bid for the first to fourth phases (every 6 months symbolizes a lease period). -4, 90DOT) (indicates that only the third and fourth phases of one card slot are bid, which is the right to use the card slot for the next year), bidder 3 submits (1-2, 30DOT) (indicates that only one card slot is bid The first and second phases of the card slot, that is, the right to use the card slot in the previous year), because the weighted total bidding price of B2 and B3 is 240DOT (902+302), the average bidding price for each lease period is 60DOT (240DOT/4=60DOT), in comparison, B1’s average bid for each lease period is 75DOT, which is much higher than that of B2 and B3, so B1 bids for all lease periods (1-4).
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analyze
If bidders have their own set price and the price is public, we can use English auction; if there is only an objective valuation amount but it is not public, then we can use Vickrey auction (Vickrey Auction). Both auctions feature underdog-dominated strategies, and the best bidders can do is realistically assess their valuations.
Compared with the English auction, our auction format will have two big differences:
Compiled by: Shawn PolkaBase
Compiled by: Shawn PolkaBase
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