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DeFiBids: Revolutionizing the DeFi space one auction at a time

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The auction system has been used for long in the history of humankind. For a long time, people have been buying goods such as vehicles, furniture, and clothes on the auction system.

 In recent years, the auction system has expanded to include foreign currency and cryptocurrency. DefiBids is one of the early participants in the cryptocurrency auction system.

About DeFiBids

DefiBids is a decentralized crypto auction platform, focusing on the ERC20 tokens. Its smart contracts enable the auctioning of various ERC20 tokens at its platform. The main aim of DeFi is to auction the tokens at a price lower than the prevailing market one. This results in the tokens being accessible to its customers at a lower price.

DeFiBids promises that the auction of ERC20 tokens will be carried out continuously. The auction system involves ERC20 token users bidding and staking the different tokens, earning rewards in return. On the other side, the company benefits from the gas fee it gets. An additional benefit comes from the sale of its native TokenToken called BIDS.

The business Model

DeFiBids’ auction business hinges on bidding and staking of the different ERC20 tokens by its customers. There are various packages of the tokens which users can bid on. Of course, the package that one bids on depends on his/her capacity to pay and the expected return.

Staking

Token holders stake the tokens to get a reward. There are two types of rewards given to platform users. There are auction rewards awarded to stakers after a successful bid.

 This reward is in the form of ETH. 35% of auction reward is distributed to stakers of the native TokenToken (BIDS) according to the proportion of their staked tokens. This means that the more internal tokens (BIDS) a user stakes, the more ETH he/she gets in return.

There is also a transaction reward, which is distributed to all stakers. 1% of the auction is distributed to all token stakers. However, this reward is issued in the native TokenToken, the BIDS. Each staker has the option to reinvest the BIDs.

It is important to note that DeFiBids uses different auction systems. For example, one of the auction system used is the lower unique bid auction. Here, the winner of the bid is the individual who has placed the smallest bid. However, one wins if he/she is the only one who has put that smallest bid.

The internal Token

As pointed above, DeFiBids’ internal TokenToken is BIDS. The BIDs are not yet tradable at any exchanges. However, soon they will be available at various exchanges. The first exchange where they will be introduced is Uniswap. The initial value of BIDS is between $0.10 and $0.15. However, there is a chance for its value to fair slightly higher than the above range. Like any value of cryptocurrencies, the price of the BIDS will be determined by its demand and supply.

The entire supply of the BIDS will not be put on the market all at once. Some coins will be locked for some time and gradually released to maintain a reasonable price. For example, all the foundation tokens will be locked for one year. On the other hand, marketing tokens will be released gradually into the market.

The value of the BIDS will also be hedged from upswings and downswings by the created ETH liquidity pool. At the inception of the project, 250 ETH and 2.5 million BIDS have been locked up. Over time, the liquidity pool will gradually be expanded in response to the release of more BIDS on the market.

Token Liquidity

The liquidity of the TokenToken is s follows: 

  • Total token supply: 50 000 000 BIDS
  • Hard Cap: 3 000 ETH
  • BIDS for sale: 20 700 000

There shall not be any public sale of the tokens.

Token Distribution

The tokens are distributed in the following manner: 

  • Presale: 41%
  • Foundation: 15%
  • Marketing: 12%
  • Team: 10%
  • Bonus Staking: 10%
  • Community incentive: 7%
  • Advisors: 5%

Benefits for platform users

As we discussed above, users benefit in several ways. They benefit from 1% of every transaction, which is distributed to all token stakers. All token stakers also get paid in ETH after every successful bid. Apart from these, there is a 10% commission on a bid as referral compensation.

Conclusion

DeFiBids offers an excellent opportunity to crypto investors to buy ERC20 tokens at less than the market price. The stakers benefit from transaction and auction rewards, while the company gains through the gas fee.

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