Clearing-Rate-Match Event

The Stake Auction of OADA operates continuously throughout the epoch until it is time to Undeploy-Auction the remaining system reserves. By utilizing a Continuous Dutch Auction, the system minimizes the ability for bidders to strategically place orders, thereby ensuring the highest profitability given the demand for stake.

To determine the current price of stake, the Controller employs a pricing curve based on the time elapsed in the epoch and the remaining reserves to be sold. The auction uses a minimum match size of 250,000 ADA stake and processes bids on a first-come, first-served basis, sorted in descending order by the Annual Percentage Yield (APY) offered.

When sufficient bids are accumulated to meet the minimum match size, the system reprices the clearing rate to be at least equal to the rate just received. This means that the price of the next matched bids will be set to ensure the system receives at least as much as it did in the previous transaction. The system will then match these orders and lock the stake with the chosen stake key until the epoch concludes. The use of a Continuous Dutch Auction allows the system to dynamically adjust pricing based on real-time demand, optimizing returns and maintaining flexibility in stake allocation.

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