SCRT-sealed-bid-auction
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baedrik
Fixed price dark pools
Fixed price dark pools allows dark pool trading (no info on order book depth or trade sizes) at a fixed price
The goal is to signal trading interest around a price, without leaking too much info about the depth of the order book and also the depth of the trades. This is done in trading sessions (say every 6 hours) for a limited amount of time (say 15 minutues). There are two processes, 1) price setting, 2) trading.
Price setting for the session can be done in two ways:
- Participants submit desired prices and then contract takes the avg. (requires contract development) - for 10 mins before the session
- Price API submits the bid/ask prices in Binance and the contract sets the avg. (MVP design - requires a price orace)
One the price is determined, the session starts and the price is fixed for the session - for 10-15 mins. Traders start adding their orders (buy / sell amount) in a secret contract. These inputs are private. Secret Contract creates an orderbook just based on quantity. Orders are matched on a first come / first serve basis. This process leaks no information about trade sizes or the interest to buy / sell at a given price.
The whole idea revolves around letting the market know that for this 10-15 minute window, there’ll be liquidity at a given price.
