Auctions
There are three auction types in the dai system, the collateral auction (flip-auction), the debt auction (flop-auction) and the surplus auction (flap-auction). Flap and Flop auctions are initiated by the Vow. Collateral auctions are initiated by the Cat.
Auction risk parameters:
-
beg- minimum bid increase -
ttl- bid duration -
tau- auction duration
Bid parameters
-
lot- amount for sale -
bid- amount paid -
guy- highest bidder -
tic- bid expiry -
end- auction expiry
Flap is the simplest of the auctions, where surplus Dai is sold for MKR. Bidders complete for lot amount of Dai with increasing bid amounts of MKR.
Bidders complete for bid amount of Dai with decreasing lot amounts of MKR.
In the tend-phase bidders compete for increasing bid amounts of Gem. Once tab amount of Dai has been raised the auction moves to the dent-phase.
During the dent-phase bidders can compete for decreasing lot amounts of Gem for tab amount of Dai. Forfeited Gem is returned to the liquidated Urn.
