Dutch Auction Creation

LitBit Finance offers a Dutch Auction Creation service for projects looking to sell a fixed number of cryptocurrency assets. Our platform utilizes a descending price auction, where the initial price of the tokens is set high and gradually lowered until the desired quantity of bids is received. This type of auction allows for a fair and transparent process for all bidders, as they can see the current price of the assets and the number of bids that have been placed at any time during the auction.

Setting up a Dutch Auction on LitBit Finance

To set up a Dutch Auction on our platform, a project first needs to create an account and provide the necessary information about the assets they wish to sell. This includes the number of tokens being offered, the starting price, and any other relevant details such as the token name and symbol.

Once the project has created its auction, it will be able to set up the auction parameters on the frontend. This includes the starting price, the number of tokens being offered, and the duration of the auction. The project can also choose to set a Fair Launch option, which will cap the total amount of tokens that can be purchased by a single address during the auction, ensuring a more equitable distribution of tokens.

Bidding on a Dutch Auction

Once the auction is live, bidders will be able to see the current price of the assets and the number of bids that have been placed at any time during the auction. They will also be able to place bids at any time, rather than being restricted to specific times or intervals.

As the auction progresses, the price will be lowered in stages. For example, let's say a project wants to auction off 50,000 tokens through the Dutch Auction on our platform. The starting bid is set at 0.10 per token. As the auction progresses, the price is lowered in stages until the desired quantity of bids is reached.

• Stage 1: Starting bid is 0.10 per token. At the end of the timer, there's a total of 25,000 tokens bought out of 50,000 (25,000 tokens left)

• Stage 2: Price lowered to 0.08 per token. At the end of the timer, there's a total of 13,000 tokens bought out of 25,000 (12,000 tokens left)

• Stage 3: Price lowered to 0.06 per token. At the end of the timer, there's a total of 9,000 tokens bought out of 12,000 (3,000 tokens left)

• Stage 4: Price lowered to 0.05 per token. At the end of the timer, there's a total of 3,000 tokens bought out of 3,000

At this point, the desired quantity of tokens sold has been reached.

Platform Support

Our platform supports a wide range of cryptocurrency assets, including utility tokens, security tokens, stablecoins, and NFTs. The transparency of the auction process and the ability for bidders to place bids at any time make Dutch auctions a popular choice for projects looking to sell their assets. In addition, the Fair launch option provides a more equitable token distribution for the project and its community.

In conclusion, LitBit Finance's Dutch Auction Creation service offers a transparent and fair way for projects to sell their assets. With the option to set up a Fair launch, projects can ensure that their token distribution is more equitable, while bidders can participate in the auction at any time and see the real-time updates of the auction process.