Now that we have the basics out of the way, let’s cover how anyone can join these auctions.
Up until this point, the only way to participate was by setting up a Keeper bot, an automated script that would participate in auctions on your behalf.
Today we’re introducing a new way to join collateral auctions that is accessible to anyone, just by loading a page and connecting your wallet.
Step 1: Find an active auction
To find on-going auctions you should go to DeFiExplore.com/Liquidations and check if there are any currently active ones.
If there are, open the one you’re interested in joining. You’ll notice the Participate button, which will take you to the next step.
The interface for participating in that specific auction will open (notice the liquidation ID# that you can use to open it later, e.g. https://defisaver.com/makerdao/liquidation/4840).
In case you joined during Phase 1, you can now bid DAI to cover the debt left in MakerDAO from this liquidation. And if you’re joining in Phase 2, you can bid on the amount of ETH you want to win with the DAI amount set in Phase 1. Remember — the smallest ETH bid in Phase 2 wins the auction.
Any time you try to increase your Phase 1 bid or if you’re only joining during Phase 2 for the first time, you will be asked to supply additional DAI above any amount you already have supplied from before*.
The duration of the auction is 6h as per current MakerDAO protocol parameters, which can be changed by MakerDAO governance. Each next bid, in both phases needs to be at least 3% different than the previous (3% greater or 100% debt for Phase 1, and 3% smaller for Phase 2).
Whoever has the smallest bid at the end of Phase 2 wins that amount of collateral and the auction concludes.
*Note: Any DAI you supplied for bidding in auctions you haven’t won remains in the VAT contract of the MakerDAO protocol. This DAI can be used for any future auctions or you can withdraw it at any time.
If you have any feedback or questions regarding this, please feel free to join our DeFi Saver discord, we would love to see you there.
P.S. The Gitcoin CLR Matching round 5 is currently live. Please consider donating to help us keep providing you with cool features such as this one. You can find our page at: https://gitcoin.co/grants/296/defi-saver. A 1 DAI donation will be matched with 13 DAI (and constantly growing!).🙌
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