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.
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 a fixed lot amount of Dai (bump) with increasing bid amounts of MKR.
Bidders complete with decreasing lot amounts of MKR for a fixed bid amount of Dai. On kick the bid is set to the flop auction lot size (sump) and lot is set to the largest uint (2^256).
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.
