NEAR Token Auction

A fair token auction platform built on the NEAR Protocol, inspired by Gnosis EasyAuction. This platform enables batch auctions for initial token offerings with a fair price discovery mechanism.

Overview

NEAR Token Auction is a smart contract that facilitates batch auctions, where a predefined amount of tokens is offered for sale. The auction mechanism ensures fair price discovery through a uniform clearing price model.

Key Features

• Batch Auction Mechanism: All orders are collected during the bidding period and settled at a uniform clearing price
• Fair Price Discovery: Final price is determined by matching buy orders from highest to lowest until the supply is exhausted
• Token Standards: Built using NEAR's fungible token standards (NEP-141)
• Storage Management: Efficient storage handling with proper deposit/withdrawal mechanisms
• Order Management: Supports order placement, cancellation, and settlement

How it Works

Auction Flow

1. Initialization:

   • Auctioneer creates auction specifying:
     • Token to be sold (auctioning token)
     • Minimum price
     • Auction duration
     • Total supply for sale

2. Bidding Phase:

   • Bidders register and place orders with their desired:
     • Amount of tokens to buy
     • Maximum price willing to pay
   • Orders can be placed until auction end time

3. Settlement:

   • After auction ends, the final price is calculated
   • Winning orders are determined
   • Tokens are distributed to winning bidders
   • Excess payments are refunded

Price Discovery

The final clearing price is determined by:

• Sorting all buy orders from highest to lowest price
• Accumulating order volumes until reaching total supply
• Setting uniform clearing price at the last included order
• All winning bids pay the same clearing price

Technical Implementation

Contract Structure

pub struct Contract {
   token: FungibleToken,
   metadata: LazyOption<FungibleTokenMetadata>,
   auction: Auction,
   orders: Vector<Order>
}

Key Methods

• new: Initialize new auction
• register_bidder: Register account for participation
• place_order: Submit bid for tokens
• settle_auction: Calculate final price and winners
• claim_tokens: Withdraw won tokens
• refund_deposit: Return funds for non-winning bids

Usage

For Auctioneers

Deploy contract

near deploy --wasmFile res/fungible_token.wasm --accountId auction.near

Initialize auction

near call auction.near new '{"owner_id": "owner.near","total_supply": "1000000000000000","metadata": {...},"auction_duration": "100000000000","min_buy_amount": "1000000000000000000000000"}' --accountId owner.near

For Bidders

Register as bidder

near call auction.near register_bidder --accountId bidder.near --deposit 0.1

Place order

near call auction.near place_order '{"buy_amount": "1000000000000000000"}' --accountId bidder.near --deposit 1

Development

Prerequisites

• NEAR CLI
• Rust
• Near Workspaces for testing

Building

cargo near build

Testing

RUST_TEST_THREADS=1 cargo test -- --nocapture

Security Considerations

• Implements proper storage management
• Handles decimal precision carefully
• Includes checks for overflow/underflow
• Validates auction parameters
• Ensures proper access control

Acknowledgements

This implementation was inspired by Gnosis EasyAuction, adapted for the NEAR Protocol ecosystem.