Liquidity Mining Auction

Overview

The Liquidity Mining Auction implements a recurring Dutch auction system with integrated permissionless fee distribution. The module manages sequential 42-hour auctions where participants can propose tokens to be liquidity mined by making a bid using PNDC, resulting in winners having the ability to claim mining fees accumulated from mining activity. The token of winning bid is mined until next auction ends.

Use Case

• Fee share from POW mining
• Liquidity mining of any token (automatic market making)

Core Mechanisms

Auction Mechanics

• Dutch Auction: Implements a descending price auction where the price decreases linearly over time
• Duration: Each auction runs for exactly 42 hours
• Recurring: New auction starts automatically when the previous one concludes
• Price Calculation: currentPrice = startingPrice - (discountRate * timeElapsed)

Token System

1. Auction Token - PNDC

   • Used for bidding
   • Transferred from winner to contract upon successful bid
   • Later, transferred to mining deposit address to be Warped and mined on Solana

2. Fee Token

   • Token used for fee distribution
   • Is deposited from Solana into auction-specific fee vaults
   • Claimable only by auction winners

Data Structures

BidderInfo

struct BidderInfo {
    string name;        // Bidder's token identifier
    string network;     // Network information for token to mine
    address tokenAddress; // On-chain address of token to mine bytes32
    address bidderAddress;  // On-chain address of bidder
}

Auction

struct Auction {
    uint256 startAt;        // Auction start timestamp
    uint256 expiresAt;      // Auction end timestamp
    uint256 winningBid;     // Winning bid amount
    address winner;         // Winner's address
    BidderInfo winnerInfo;  // Winner's metadata
    bool fundsSentToMine;   // Mining transfer status
}

FeeVault

struct FeeVault {
    uint256 amount;     // Accumulated fees
    bool claimed;       // Claim status
}

Key Functions

Auction Operations

1. bid(string name, string network, address tokenAddress, address bidderAddress)

   • Accepts a bid at current price
   • Records winner information
   • Transfers auction tokens
   • Starts next auction

2. getPrice()

   • Calculates current auction price
   • Based on time elapsed and discount rate
   • Returns current valid price

Fee Management

1. depositFee(uint256 amount)

   • Deposits fee tokens into last winning auction vault
   • Requires completed auction
   • Accumulates fees in vault

2. claimFee(uint256 auctionId)

   • Allows winner to claim accumulated fees in specific vault
   • One-time claim per auction
   • Transfers entire vault balance

Mining Operations

1. sendToMine(uint256 auctionId)
   • Transfers winning bid to mining deposit
   • Permissionless execution
   • One-time operation per auction