So, what is the auction program on Xeta? An auction is a program that enables NFT owners to create an auction for their NFT. Once the NFT auction is created, other users can bid on the NFT or buy it instantly at the limit price. An auction is considered successful if the target bid is reached at expiry. Successful auctions transfer the NFT to the highest bidder and the funds to the auction creator, and vice versa for unsuccessful auctions.
To create an auction, visit the Xeta network app and click on “connect wallet” in the top right corner. Click on your wallet and select “new pool” under wallet actions. You will be able to specify the program and choose the NFT that you want to sell. Furthermore, you can add Xeta target and limit values and set an expiration date.
Once an auction pool is created, the creator must deposit the associated NFT to it. Any other user can then bid on the NFT, as long as the bid is higher than the previous highest bid. To bid on an auction, visit the auction pool and click on “bid”, and enter a XETA amount for your desired bid. You will receive the NFT from the auction pool after expiry if you remain the highest bidder or if your bid is the limit bid, or you will receive back your XETA if someone outbids you.
Auctions allow users to offer non-fungible tokens for sale. Participants can submit XETA-bids until the auction expires or the XETA limit is reached. Auction programs automatically handle the resolution by transferring the highest bid and NFT to their new or previous owners (depending on the auction status).
Auctioning an NFT that a user owns in exchange for XETA
The NFT owner creates an auction pool and sets a XETA target (minimum bid to consider the auction successful), a limit value (instant-buy bid), and a time of expiration. The NFT owner then deposits the NFT to the auction pool, and participants can place bids to the auction pool. When a participant places a bid higher than the previous bid, the pool automatically returns the earlier bid to the previous leader.
The auction outcome is determined when the auction expires or when the limit bid is reached before the expiration time. An auction is considered successful when the limit bid is reached before expiration, or when the target bid is reached at the time of expiration. Auction pools charge a commission of 2.5% for every concluded auction.
Upon success/failure of the auction, any Xeta user can call the resolve/cancel method of the auction pool, which then handles the asset transfers to the new or old owners. On auction failure (target bid not reached on expiry), the NFT is returned to the pool creator, and the highest bid is returned to the highest bidder. On auction success, the NFT is transferred to the highest bidder, and the highest bid is transferred to the auction-pool creator.
Transfer a XETA bid to the auction pool.
Bid higher than previous bid
Bid transfer from sender to pool,
Return transfer from pool to previous highest bidder
Amount - Bid amount
Resolve a successfully concluded auction pool.
Pool closed or expired and bid >= xetaTarget,
Pool active and bid = xetaLimit
NFT transfer from pool to highest bidder,
XETA transfer from pool to pool creator
Cancel an unsuccessful auction pool.
Pool closed or expired and bid < xetaTarget
NFT transfer from pool to pool creator,
XETA transfer from pool to highest bidder
Create an auction pool for a particular NFT.
Pool token ownership
Token - NFT address
XetaTarget - Minimum bid for auction to be considered successful upon expiry
XetaLimit - Maximum bid, equivalent to instant-buy bid
TransfersLimit - Maximum limit of transfers
Expires - Date and time of expiry
Deposit an NFT to the auction pool.
Pool token ownership
NFT transfer from sender to pool
Unlocks - Datetime when NFT claim can be unlocked and withdrawn
Closes an auction before expiry. Allows anyone to call cancel or resolve methods immediately.