TRAVA KNIGHT NFT AUCTION MECHANISM VERSION 1
The launch of Trava Finance‘s, Trava Knight NFT has marked a significant milestone in the growth of Trava Lending Protocol. Since its launch, over 15,000 chests have been sold and the market volume has reached 10 million TRAVA. To continue its success and contribute to the long-term goal of Trava Lending Pool, Trava officially introduce its users to the auction mechanism version 1, which will be going live on April 28th. Trava Knight auction is the next step to actualize and bring Trava closer to its NFT-collateralization in the Trava Lending Pool.
Benefit for those who participate in the Trava Knight auction
Benefit for auction publishers (the sellers)
Auction publishers (or sellers) are those who open auctions for their Knights. Opening an auction allows auction publishers to set up their price floor for their Knights, which determines their minimum desired price, helping them avoid selling their Knights at an unwanted low price compared to the market price.
The auction opens a great opportunity for Knight owners to make profits without the need of disassembling their Knights to pieces and selling each item multiple times, which can cause wasted gas fees due to multiple transactions.
Benefit for bidders
Trava Knight auction is of benefit for bidders since it offers them the opportunity to get the full Knight, not every piece of armoury NFT on Trava NFT Marketplace. This helps bidders save more time in obtaining a Knight without finding and collecting armoury items to assemble.
The auction also offers bidders an excellent method to get their favorable Knights, which suits their needs for missions such as Farming, Expedition, Farming with EXP and PvP tournaments in the future.
Benefit for Trava Lending Pool
The NFT Auction is the first step toward Trava Finance’s long-term aim of allowing NFTs to be used as collateral in the Trava Lending pool.
By using an auction mechanism, the NFT will be priced and subsequently used as collateral in the Trava loan pool. This is a good method to vary the collaterals and give users more opportunities to lend assets.
Trava Knight auction mechanism in the nutshell
Rules
- Auction is ONLY cancellable when it has NO BIDS. After the first bid comes in, neither you nor Trava can cancel it, as rules are written in the smart contract.
- When the bidding countdown is less than 5 minutes left, every new bid will extend the countdown by 5 minutes;
- Each bid price will be increased by at least 5% of the previous one. Once the countdown ends, the auction item will be obtained by the last/highest bidder;
- The most important rule: 5% of the price increase for each bid is distributed to the previous bidder, and the remaining 95% would be the income of the auction publisher if it’s the last bid or returned to the bidder when it’s outbid.
With the rules, each bidder would either take the 5% share of the next bid or obtain the auction Knight with the price he/she offered. And the first bidder will additionally be free from distributing his/her own 5% to other people.
ABOUT Trava Finance
Trava.Finance is the world’s first decentralized marketplace for cross-chain lending.
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