Auction House

The GBM Auction House is a place where players can create Auctions to sell their assets.

What is a GBM Auction?

GBM Auction is a special type of English auction where bidders make money when they are outbid.

Whenever an auction participant is outbid, their bid is returned immediately, plus an additional amount known as the incentive. The incentive is subtracted from the final amount paid out to the seller.

GBM Auctions are an exciting and popular mechanic for trading assets in the Aavegotchi protocol.

Let's look at how to create and participate in a GBM auction.

Creating an Auction

To create an auction, visit the "My Inventory" page and click on an item you would like to sell. Click the "Auction" button to view the auction configuration.

There are several key fields you will need to fill in:

• Start date: When the auction will begin. Can be configured to start in the future.

• Duration: How long the auction lasts.

• Quantity: How many of the item you would like to sell. Only available for ERC1155 items such as Wearables and Forge items.

• Hammer time: Hardcoded to twenty minutes. Any bid placed the last twenty minutes of the Auction will extend its duration by twenty minutes.

• GBM Incentives: The max incentive you would like to pay to bidders, as a percentage of the total bid amount.

  • Low: 1%

  • Medium: 5%

  • High: 10%

Once you have input your auction configurations, click the "Confirm" button to initiate an onchain transaction.

Approve required: If this is the first time you have created an Auction for a specific NFT type, you will need to "Approve NFT" first.

After the transaction to create the auction has been confirmed onchain, the auction will appear in the Auction house under "Live" for auctions that have begun, or "Upcoming" for auctions scheduled in the future.

Bidding on an Item

To place a bid, simply visit the Auction house and click on an item you would like to bid for. Then click the "Place Bid" button to view the Place Bid popup.

Within the Place Bid popup, you can select how much you would like to bid. Each auction has a minimum bid required that changes based on the incentive assigned to that auction.

Placing the minimum bid will result in an incentive 1/10th the amount of the max incentive for that auction. For example, if the max incentive is 5% and you place a minimum bid, you will receive a 0.5% incentive on your bid when outbid.

To get the maximum incentive upon outbid, simply double the existing bid.

Once you have selected your bid amount, click "Next" to review your order, and then "Confirm" to initiate the onchain transaction.

GHST Approval required: If this is your first time bidding on an Auction, you will need to approve your GHST to be spent.

Cancelling an Auction

There are two times an auction can be cancelled:

• Before the first bid is placed

• Within one hour of the auction ending

Only a seller can cancel an auction. To cancel an existing auction, visit the "My Activity" page in your user profile and click the Auction tabs.

Click on the Auction you would like to cancel and click "Cancel" to initiate the cancel transaction onchain.

Cancelling a completed auction requires the seller to pay a 4% auction fee plus the incentive of the final bid.

Claiming your Item / Proceeds

Once the hour grace period has passed, the auction can be finalized. When an auction is finalized, the proceeds (GHST) go to the seller (minus fees) and the item goes to the buyer.

To claim your proceeds as a seller, visit the "My Activity" tab in your profile and click the Auctions tab. Then click into an unclaimed auction and click "Claim" to initiate the claiming transaction.

To claim your item as a buyer, visit the "My Activity" tab in your profile and click the "Bids" tab. Then click into an unclaimed auction and click "Claim" to initiate the claiming transaction.

Finalizing the auction will transfer both proceeds (GHST) and the auctioned item to seller and buyer, irrespective of who initiated the claiming transaction.

Happy auctioning!