How do auctions work? Does the bidding price start at

Question

DeFiChain - International

James

How do auctions work? Does the bidding price start at

the liquidation price of the vault or does it go lower?

#blockchain #cryptocurrency #defichain #english

0

03.07.2022

2 ответов

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Spencer L

If you bid over the minimum the rest is credited to the vault owner. So I could have bid $1,500 in the example above, but the owner only gets $450 and keeps his $1,000, so he loses

0

03.07.2022

Spencer L · Accepted Answer

Spencer L

The way that it works when collateral is no longer >150% (or whatever ratio) the system asks for a minimum bid of just the loan + 5%. So if collateral is $1,500 then loan is $1,000, so system will open an auction with minimum bid of $1,050. If someone bids $1,050 the system pays off the loan and burns the 5%, bidder earns $1,500 and profits at the expense of the vault owner

0

03.07.2022

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How do auctions work? Does the bidding price start at

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