Term Finance v1
  • Introduction to Term Finance
  • Protocol
    • Term Repos
      • Key terms
      • Margin maintenance
      • Maturity
      • Collapse position
      • Defaults
        • Liquidation
        • Liquidation protection
      • Terminology
      • Conventions
      • Rollovers
    • Term Auctions
      • Auction characteristics
      • Auction timeline
      • Complete Auction
        • Clearing rate
        • Assignment
        • Settlement
      • Terminology
    • Term Repo Tokens
      • Key metadata
      • Valuation
    • Fees and Penalties
      • Servicing Fee
      • Liquidated Damages
    • Risk Disclosures
      • Term Repo Risks
      • Smart Contract Risk
      • Digital Asset Risk
      • Ethereum Network Risk
    • FAQ
  • PERIPHERY
    • Blue Sheets (Simple-Earn)
      • Security Audits
      • GitHub Repo
      • FAQ
  • Developers
    • Developer Docs
    • Security Audits
  • Legal
    • Terms of Use
    • Privacy Policy
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  1. Protocol

Term Auctions

Term Auctions are sealed-bid, single-shot, double-auctions, also known as "call-markets" where bids and offers are batched by an auctioneer for matching and execution at pre-specified times.

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Last updated 7 months ago

Term Auctions

Term Auctions are sealed-bid, second-price, single-shot, single-price , or "call-markets," where lenders submit offers to lend , and borrowers submit bids to borrow . The Protocol then determines some interest rate that clears the market (the ): lenders willing to lend below the make a loan and borrowers willing to pay at or above the receive a loan, in each case at the . By batching many orders together at periodic intervals, double auctions increase liquidity and decrease transaction costs.

Fills in auction are assigned with priority given to lenders most willing to pay (highest bid) and borrowers most willing to lend (lowest offer). A bid above the market clearing rate or an offer below the market clearing rate is not guaranteed to result in a fill. Fills will be assigned until the total market clearing volume is exhausted on either side of the market.

double-auctions
purchase tokens
purchase tokens
clearing rate
clearing rate
clearing rate
clearing rate