Uniswap Revives Ico-style Token Launches With New Onchain Auction...

Uniswap launched Continuous Clearing Auctions, a new onchain token sale mechanism designed to offer transparent price discovery, debuting with Aztec’s sale.

Decentralized finance heavyweight Uniswap introduced Continuous Clearing Auctions (CCA), a new protocol aiming to facilitate token offerings through its infrastructure.

According to a Thursday announcement, Uniswap’s CCA “helps teams bootstrap liquidity on Uniswap v4 and find the market price for new and low-liquidity tokens.” The company said this was just “the first of several tools” it is building to help projects launch and deepen token liquidity on the platform.

The Aztec team claimed that it has “taken the community access that made the 2017 ICO era great and made it even better.” The team reportedly worked alongside Uniswap to develop the new protocol and “prioritize fair access, permissionless, on-chain access to community members and the general public pre-launch.” The team said the AZTEC token will be 100% community-owned once tokens unlock.

Uniswap and Aztec did not respond to requests for comment.

Uniswap said in the press release that “liquidity formation often happens behind closed doors,” leading to “information gaps, privileges a few players,” and sometimes “thin and unstable” markets. With CCA, the two partners hope to implement an onchain native market creation with transparent pricing, bidding and settlement, as well as gradual price discovery and automatic liquidity seeding to Uniswap’s decentralized exchange (DEX).

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Users can then place their bids, specifying a maximum price and a total spend. Bids cannot be withdrawn while in range, but there is no limit on the number of bids. Each bid is automatically spread across the remaining blocks of the auction and only fills if the block’s clearing price is at or below the limit price.

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At the end of each block, the protocol sets the highest price at which tokens were sold in that block. Higher bids fill first, then bids at the maximum price; everyone who fills in the block pays the same price.

Source: CoinTelegraph