Epoch Stake Auction
Bid on stake for Catalyst, Governance, ISPOs, and other Yield strategies
Last updated
Bid on stake for Catalyst, Governance, ISPOs, and other Yield strategies
Last updated
Staking rights are are valuable in the Cardano ecosystem, especially as we move into the era of governance. For now, acquisition of stake power can be a useful strategy for leveraging on ISPOs or Catalyst.
The Epoch Stake Auction is an app that allows users to bid on the staking rights of all of the ADA reserves in the OADA system. The auction is a Dutch Auction that takes place every epoch, meaning the stake is sold gradually to the highest bidders over the course of the epoch. Staking rights won in the auction are retained only for the single epoch during which bids are matched.
The first step in using the Epoch Stake Auction is navigating to the dashboard, as shown below:
The dashboard displays pertinent information such as:
Epoch Number - the current Cardano epoch.
Estimated Available Stake - the amount of stake that has not yet been bought.
Auction End - the amount of time until the epoch and Stake Auction end.
Sold Stake - the amount of stake that has already been bought for the current epoch.
Order Book Depth Chart - visualizes the quantity of bids at various APR levels.
Active Orders - displays bids submitted, including the quantity of ADA stake being bid on, and the APR offered to the system in exchange for the stake.
Order Window - The interface users engage with to place market or limit orders on the stake.
Before you place your order for stake, it's important to understand how they work.
For Market Orders, the Auction utilizes a Market Clearing Interest Rate to determine the current market demand for bids on stake. As more users place market orders, the clearing rate will rise to reflect the increase in demand. If the amount of market orders slows, the clearing rate will decrease to reflect the diminishing demand. When a users places a market order for stake, their order will be matched immediately at the Market Clearing Interest Rate.
For Limit Orders, the user will specify the interest rate they wish to offer the system. Unlike Market Orders, Limit Orders will sit open and unmatched until the Market Clearing Interest Rate crosses the price of the Limit Order. For this reason, the highest % orders in the book will get matched first. When Limit Orders get matched, they will raise the Market Clearing Interest Rate temporarily.
Limit orders can remain open indefinitely until they are eventually matched, and the order will remain staked so you do not forgo ADA staking rewards while waiting.
Enter the requested stake amount.
The maximum amount to request is limited by estimated available stake. The minimum order size is 250,000 ADA.
Market Clearing Interest Rate (APR%) will be automatically calculated.
Total Bid Amount is automatically calculated.
This is the total payment amount you will spend to acquire the staking rights for this order.
Choose to pay for the bid in ADA or OADA.
Paying in OADA gives your order a 0.2% priority APY boost.
Enter the stake address you want the rented ADA to be associated with.
The default value comes from your connected wallet.
Click on the "Bid Now" button.
Sign the transaction and wait for confirmation. The stake will be attached to your key.
Specify whether your order is Partial Fill or Fill or Kill.
Partial Fill orders can be matched gradually in chunks. This is the behavior most users will expect, as it allows the order to fill whenever the Market Clearing Rate passes across their order's interest rate.
Fill or Kill orders will only be matched if there is enough liquidity to completely fill the order, or it will not be filled at all. This is not recommended for most users.
Enter the requested stake amount.
The maximum amount to request is limited by estimated available stake. The minimum order size is 250,000 ADA.
Enter the Interest Rate (APR%) you would like to pay for this order.
Higher rates will cost you more but will be more likely to be matched. Check the order book to see competitive rates on limit orders.
Total Bid Amount is automatically calculated.
This is the total payment amount you will spend to acquire the staking rights for this order.
Choose to pay for the bid in ADA or OADA.
Paying in OADA gives your order a 0.2% priority APY boost.
Enter the stake address you want the rented ADA to be associated with.
The default value comes from your connected wallet.
Click on the "Bid Now" button.
Sign the transaction and wait for confirmation.
Once completed, your order will be displayed in the Your Bids section at the bottom of the dashboard page.
You can cancel your bid by clicking the "Cancel Bid" button up to two hours before the epoch ends.
If your order is filled, the ADA will be associated with your Stake Key during the epoch boundary snapshot.
If the order is not filled, your order will sit open indefinitely until it fills or you cancel it.
if ADA was used to place the order, it will collect staking rewards if it does not get matched during the epoch the bid was placed.