Based on consideration for effective price discovery for mining and staking output, and in light of future liquidity provisions, we built a Dutch Auction marketplace based on 0x order book model. By adopting 0x, we hope to eventually benefit from 0x's on-chain liquidity integration on its 3.0 roadmap, thus tapping into the shared liquidity network pooled by Kyber that incorporates Ethereum liquidity reserves such as 0x and Uniswap, etc.
What it does
Mine Auction (HashEdge) is an auction marketplace built on Ethereum blockchain where contracts of future mining/staking crypto output can be traded. It is a one-stop-shop for anyone who would like to earn protocol-governed passive income through participating in a blockchain network, but without the hassle of setting up mining or staking operations, or having to worry about platform scam or counter party risks.
Any blockchain network service provider (i.e. miner, validator) can “sell” their production to earn service fee, obtain capital to scale up operation or lock in price in advance to hedge their risk, all by simply listing a mining contract.
Anyone who can participate in a Dutch auction to buy a tokenized contract that represent future mining/staking payout directly from a miner or validator of a blockchain network. The contractual agreement between the buyer and seller are enforced via smart contract. All transactions will be settled on chain with immutable records. Counter party risk will be eliminated with on-chain collateralization.
How we built it
UI for Mine Auction is modified upon my ETHSingapore hackathon winning project Hashedge last December. In my previous hack, we modified Uniswap and implemented a derivatives issuance marketplace. This time around, based on the 0x extensions, we wrote a smart contract for the dutch auction of the tokenized mining contract.
Challenges we ran into
We were originally planning on building mirror trading scheme (mirror auction) for the passive income investors, but we ran into problem of ERC721 auction not compatible with delegated trading model.
Accomplishments that we're proud of
We were able to learn from the 0x team and built from scratch a dutch auction for our tokenized contract.
What we learned
0x smart contract
What's next for Mine Auction (Hashedge)
Fully develop it