beg
: Minimum bid increase (for example, 3%).ttl
: Bid duration (for example, 6 hours). The auction ends if no new bid is placed during this time.tau
: Auction duration (for example, 24 hours). The auction ends after this period under all circumstances.lot
: Amount of asset that is up for auction/sale.bid
: Current highest bid.guy
: Highest bidder.tic
: Bid expiry date/time (empty if zero bids).end
: Auction expiry date/time.beg
at work. For example, the beg
could be set to 3%, meaning if the current bidder has placed a bid of 100 Dai, then the next bid must be at least 103 Dai. Overall, the purpose of the bid increment system is to incentivize early bidding and make the auction process move quickly.heal
transaction to the system contract called Vow.flap
transaction to the Vow contract.lot
) of Dai is put up for sale. Bidders then bid with MKR in increments greater than the minimum bid increase amount. The auction officially ends when the bid duration ends (ttl
) without another bid OR when the auction duration (tau
) has been reached. Once the auction ends, the MKR received for the surplus Dai is then sent to be burnt, thereby contracting the system’s MKR supply.lot
). Other bidders can raise that bid offering more Dai for the same collateral amount (lot
) until there is a bid that covers the outstanding debt. If and when there is a bid that covers the outstanding debt, the auction will turn into a reverse auction, where a bidder bids on accepting smaller parts of the collateral for the fixed amount of Dai that covers the outstanding debt. The auction ends when the bid duration (ttl
) has passed OR when the auction duration (tau
) has been reached. Again, this process is designed to encourage early bidding. Once the auction is over, the system sends the collateral to the winning bidder’s address.heal
transaction to the system contract named Vow.flop
transaction to the Vow contractlot
) they have to pay at auction settlement. The auction ends when the bid duration (ttl
) has passed OR when the auction duration (tau
) has been reached. Once the auction is over, the Dai, paid into the system by bidders in exchange for newly minted MKR, reduces the original debt balance in the system.