Dutch Auction

Users pre-pay interest for a specified number of days until their listing expires and are free to update the price or duration at the current fixed interest rate at any time. Listings can be closed at any time by the holder, returning any remaining pre-paid balance.

If a user’s pre-pay balance runs out (and the listing is not filled or closed), the item is immediately locked into a dutch auction where the price falls from its current floor multiple down to the floor (1x) over a period of 4 days. By knowing the pre-pay expiry time upfront at listing, there is no requirement for keepers to trigger a dutch auction.

The value of the item falls linearly every second until it reaches 1 ƒ token, at which point it can be redeemed in the same way as any other floor NFT inside the pool.

This auction process allows users to “set and forget” their listings, accepting that they will pay a predetermined listing fee and will either sell at the initial price set or - in the event that they have mispriced the asset - during the auction process.