What is Gnosis Auction Launchpad

Gnosis Auction is a platform for conducting fair, transparent, and decentralized batch auctions to enable token price discovery for any Ethereum project.

How does the Gnosis Auction batch auction mechanism work?

For Auctioneers

Any person or team that wants to interact with Gnosis Auction smart contract for the purpose of conducting a token auction can either use the simple Gnosis Safe App called Gnosis Auction Starter or run a script.

The Gnosis Auction Starter Safe App is available directly from the Gnosis Safe Multisig interface on the APPS page. Using the app for Gnosis Auction has the tremendous benefit of your raised funds becoming immediately available after the auction closes in your Gnosis Safe Multisig, the most trusted platform to manage digital assets on Ethereum, with token governance tools like SafeSnap at your fingertips.

To launch an auction, the auctioneer will only be required to configure six auction parameters (if needed, the platform offers more parameters to configure) displayed above, which are:

• Auctioning-token: refers to the token you want to sell in the auction, with the token address as a string.
• Bidding-token: refers to the token the bidders will use to bid on the auctioned token (e.g. USDC, ETH, or DAI), with the token address as a string.
• Sell-amount: refers to the amount of tokens that you will sell, with the amount as an integer.
• Min-buy-amount: refers to the minimum amount of buy tokens you are willing to accept. The minimum sell price of the auction is calculated by dividing the sell-amount/min-buy-amount.
• Duration: refers to for how long is the auction going to last.
• Network: refers to the network where the auction will take place (e.g. Mainnet or xDai).

That's it! With all those parameters set in place, the auction can go live. Bidders who are interested in acquiring the tokens auctioned can start to place buy orders with their own limit price as soon as the auction begins.

For Bidders

• Once the auction begins, bidders can place limit orders directly from the Gnosis Auction platform's interface (displayed above).
• Once the pre-defined auction duration time comes to an end, the token's clearing price is calculated.
• The smart contract sorts bids from highest to lowest price. Bids include a limit order for the token price and the amount of tokens to buy.
• The smart contract works backward from the highest bid, cumulatively adding each bid's amount of tokens to sell, until the bid’s sum multiplied by the price of the highest bid equals the sell amount of tokens (pre-defined by the auctioneer).
• The price of the bid (added to all previous bids' amount of tokens) that reaches the amount of tokens to sell is selected as the final clearing price for all participants.
• Bidders who specified a maximum price in their limit order that is equal to or greater than the final clearing price receive tokens at the clearing price. Bidders that specified a maximum price in their limit order that is less than the final clearing price do not receive the tokens being auctioned, but they can still withdraw their bidding tokens from the DEX.

Gnosis Auction Community

• Twitter: https://twitter.com/GnosisAuction
• Medium: https://medium.com/@gnosisPM