Reopening auction

ReopeningAuction sells, at NYSE's regular open, the collateral of margin positions that fell short over a weekend or holiday closure. It runs one sealed-bid, uniform-price batch per Stock Token, so bidders compete on price in a single clearing. You can enroll a position, bid, submit the clearing price or claim what you won.

Place a bid#

A bid is committed hidden, revealed in the last half hour before the open, and claimed after the round clears. The commitment binds the bid to your address.

import { toHex } from 'viem'
import { auction } from '@tapehouse/sdk'

const { openMs, revealing } = await auction.phase(publicClient, deployments)
const salt = toHex(crypto.getRandomValues(new Uint8Array(32))) // keep it until the reveal

const hash = auction.commitment({
  bidder: wallet.account.address,
  asset: 'TSLA',
  openMs,
  quantity: 5n * 10n ** 18n,
  price: 20_000_000_000n,
  salt,
})

await wallet.writeContract(auction.commit(deployments, { asset: 'TSLA', commitment: hash, deposit: 1_000_000_000n }))

quantity has 18 decimals. price is USD with 8 decimals per token, so the value above is 200 USD. deposit is in USDG units (6 decimals) and must be at least the bond, 100 USDG. It may exceed what the bid is worth to hide the bid's size, and the reveal returns the surplus.

In the half hour before the open, reveal the same values:

await wallet.writeContract(auction.reveal(deployments, { asset: 'TSLA', openMs, quantity: 5n * 10n ** 18n, price: 20_000_000_000n, salt }))

After the open, anyone clears the round at the price clearingPrice computes, then each bidder claims:

const { bids, supply, floor } = await auction.round(publicClient, deployments, { asset: 'TSLA', openMs })
const price = auction.clearingPrice(bids, supply, floor)

await wallet.writeContract(auction.clear(deployments, { asset: 'TSLA', openMs, price: price! }))
await wallet.writeContract(auction.claim(deployments, { asset: 'TSLA', openMs, index: 0n }))

index is the position of your bid in bids. clearingPrice returns undefined when bids exist and no supply does.

Phases#

The phases follow the band's session(). A round is keyed by its Stock Token's symbol and the regular open, in milliseconds.

phase() returns the open the contract is committing or revealing for, and whether it is revealing, or zero outside those phases. After a weekend the session names the open from the 24/5 reopen. After a holiday it names the open until the midnight that ends the holiday, and from then on only if a round opened before that midnight (lastOpenMs).

A round nobody clears in its hour refunds every bid, and its positions return to the liquidator's Dutch auction. A halted asset reopens into the Dutch auction: no round is keyed on a halt's end.

Functions#

The reads are round(symbol, openMs), lots(symbol, openMs), bids(symbol, openMs), phase(), lastOpenMs(), commitments(symbol, openMs, commitment), enrolled(openMs, account, position, symbol), feeds(symbol) and the immutables liquidator, accounts, band and usdg.

The SDK's auction.round returns the round's fields with its lots and bids. auction.previewFloor gives the floor a round will open with, auction.constants the bond, the minimum bid and the window lengths, and auction.enroll, auction.forfeit and auction.commitmentOf cover the rest.

Rules#

The floor is 10% below the low edge of the band that the asset's BandFeed sealed at the reopen, which is the liquidator's maximum discount. Without a seal, the floor is set from the band's low edge when the round opens. No bid below the floor is taken. A bid is refused if it is below the floor, worth less than MIN_BID at the floor, or worth more than its deposit. A bid that finds no place in a full book gets its whole deposit back and emits Outbid.

A lot is what repays all the position owes at the floor, fee included, capped by what the position holds and what its lending vault can return of what it lent. While the market is open, the liquidator holds an enrolled position out of its Dutch auction until the round's clearing window closes.

Clearing#

The clearing price is the highest bid price at which the bids at or above it take the whole supply. When all bids together take less, it is the lowest bid price. With no bid, it is the floor. Every bid above it fills, and bids at it share what is left pro rata. Each lot's share of what the bids take is sold through the liquidator at that one price. The gap backstop buys the rest of the lot at the same price, never above the band's low edge, so a high bid cannot set what the backstop pays. A backstop that cannot buy leaves the rest in the position and never stops the clearing.

What neither the bids nor the backstop take stays in the positions, which return to the Dutch auction. What an emptied position still owes goes to the backstop's cover.

Events#

Errors#

Next#

• Gap backstop
• Liquidator
• Auction guide
• Reference bidder