Dutch Auction Liquidation Bid Tool

WHAT IT DOES

Dutch Auction Liquidation Bid Tool enables users to place bids in Dutch auction liquidations, where the price of liquidated collateral decreases over time until a bid is placed. The tool reads your connected wallet address, auction contract address, collateral token address, debt token address, current auction price, starting price, minimum price, price decay rate, bid amount, auction expiration, current block timestamp, and liquidator eligibility. It displays the full auction context including the starting price, minimum price, current price, decay rate, and expiration time. If you are eligible to bid, the tool allows you to place a bid at the current price, acquiring the collateral at the auction price.

HOW TO USE

Connect your wallet and select your network. Enter the Dutch auction contract address, collateral token address, and debt token address. Specify your bid amount in debt tokens. Click "Fetch auction status" to load the current auction details including the starting price, minimum price, current price (which decreases over time), decay rate, expiration time, and whether you are eligible to bid. If you are eligible and the auction is active, review the current price and your bid amount. Click "Place bid" to submit your bid at the current price. If your bid is successful, you will receive the collateral tokens.

THE REAL MECHANISM — PRICE DECAY BIDDING WITH ELIGIBILITY VERIFICATION

Unlike standard auctions where bidders compete by increasing prices, Dutch auctions start at a high price that decreases over time. The getAuctionInfo function returns the starting price, minimum price, price decay rate (per block or second), expiration time, and the collateral and debt token addresses. The getCurrentPrice function calculates the current price based on the elapsed time since the auction started and the decay rate: currentPrice = max(startPrice - decayRate * elapsedTime, minPrice). The canLiquidate function checks whether a specific address is eligible to bid, which may depend on whether the user holds the debt token or is a registered liquidator. The bid function accepts a bid amount and verifies that the bid is placed at or above the current price, that the auction has not expired, and that the bidder is eligible. All arithmetic uses ethers.js BigNumber with the token's decimal precision, and gas costs are reported using receipt.effectiveGasPrice.

WHAT IT CANNOT SEE

Cannot predict auction price floor—the tool cannot forecast the minimum price the auction will reach. It cannot ensure profitable bid—the tool cannot guarantee that the collateral acquired will be worth more than the bid amount. It cannot detect if the auction contract contains vulnerabilities—the tool does not audit the auction logic. It cannot verify off-chain collateral valuation accuracy—the tool relies on the protocol's valuation and cannot verify oracle prices. It cannot recover funds if a bid is placed at an unfavorable price.

PLEASE NOTE — EVM CHAINS ONLY

This tool exclusively supports EVM-compatible chains where ethers.js can connect via standard JSON-RPC. It does not support non-EVM chains such as Solana, Tron, Starknet, SUI, TON, Aptos, Bitcoin, Cosmos, or XRP. The auction contract must implement the specific interface expected by this tool (getAuctionInfo, getCurrentPrice, canLiquidate, bid). Always review the auction details and current price before bidding. This tool is a bidding interface, not a financial advisor or investment strategist.