BNB

Binance's New Listing Spikes 50%: What is Bounce?

by BSCN

May 29, 2024

chain

The platform supports multiple auction formats such as fixed swap, sealed-bid, Dutch, and English auctions.

Binance exchange’s new listing Bounce Protocol’s native token $AUCTION spikes 50% within hours of listing. But what is Bounce? Lets find out…

 

What is Bounce?

Bounce Finance, a cross-chain decentralized auction protocol, offers a suite of auction services. Users can create, trade, and collect various digital assets, including fungible tokens and non-fungible tokens (NFTs). 

 

The platform also lets users create prediction pools, place bets, and participate in markets with elegant calculations. The prediction engine supports multiple assets, including Bitcoin (BTC), Ethereum (ETH), Chainlink (LINK), and others.

 

Bounce integrates decentralized finance (DeFi) elements such as staking mechanisms and liquidity mining. Users can trade assets via the NFT marketplace and benefit from both private and public over-the-counter (OTC) trading with automatic execution. 

 

By leveraging a range of trustless auction formats and competitive swap environments, Bounce provides a platform for swapping and trading rare digital assets.

Auction Formats on Bounce

Bounce Finance supports multiple auction types, each catering to different user needs and preferences:

 

Fixed Swap: In this format, auctioneers and bidders agree on a set price for the assets. This type of auction is beneficial for sellers who have a specific target value in mind. 

 

Sealed-Bid: In sealed-bid auctions, every bidder submits a concealed bid to the auctioneer before the auction starts. 

 

Traditionally, these bids are physically sealed, preventing participants from seeing each other's bids until the auction begins. All bids are opened simultaneously, and each bidder has only one chance to place their bid. 

 

Dutch Auction: In a Dutch auction, assets begin with a starting price known as the “ceiling price.” The price drops by a predetermined amount periodically until all assets are sold. This format is advantageous for sellers looking to sell quickly at a fair market price.

 

English Auction: In an English auction, bidders openly compete with each other, increasing their bids until the highest bid wins. This type of auction is common in traditional auction houses and is now available in a decentralized format on Bounce Finance.

Bounce Finance Features

Bounce Finance’s Auction System

Unlike traditional auction houses, Bounce Finance leverages blockchain technology to facilitate trustless auctions. This decentralized approach means there is no central authority controlling the process, ensuring transparency and fairness.

 

Bounce Polkadot

Bounce provides decentralized crowdloans via the Polkadot ecosystem. Participants can pledge Polkadot parachain bonds for DOT lending, enabling users to earn two streams of passive income. 

 

Users can access crowd loan rewards alongside staking rewards and unlock liquidity options by claiming parachain bonds. 

 

Bounce OTC

The Bounce over-the-counter (OTC) trading platform aims to provide attractive prices for token swaps during bear markets. The OTC platform reportedly offers slippage-free trading on any ERC-20 token with zero limits.

 

Social Verified Auctions

Social verified auction pools aim to minimize illegitimate users or scam pools while preserving decentralization. To create a social verified pool, users must complete a project information page and provide verifiable on-chain data. Community members stake AUCTION tokens to verify the pool, ensuring only legitimate projects are listed.

 

Lottery Auctions

Lottery auctions allow participants to purchase lottery tickets for a predetermined amount, entering a prize draw. A smart contract randomly selects the winner, who then receives the auctioned asset. This format offers a unique way for users to participate in auctions with a chance to win valuable assets.

 

Competitive Swap Environment

Bounce Finance operates on the principle that scarce resources create a competitive swap environment. 

 

Unlike decentralized exchanges (DEXs) like Uniswap, which offer infinite liquidity, Bounce limits the supply of assets to facilitate bidding wars via auctions. This gamified approach to token swaps reportedly encourages competition and increases the value of the assets being auctioned. 

AUCTION Token Utility

The AUCTION token is essential for the operation of the Bounce Finance platform. It is used for:

 

Auction Participation: Users spend AUCTION tokens to cover fees for creating and bidding on auctions.

 

Governance: AUCTION token holders have a say in the platform's future, voting on proposals that influence its development.

Advanced Features for AUCTION Holders

Holding AUCTION tokens unlocks several exclusive features, such as access to special auction types unavailable to regular users. Additionally, AUCTION empowers users to create and mint NFTs directly on the Bounce Finance platform, enhancing its utility and value.

Founders and Historical Milestones

Bounce Finance was founded in 2020 by Jack Lu and Chandler Song. The platform introduced two types of auction pools, fixed and dynamic ratio swapping, in August 2020.

 

Shortly after, Bounce completed its first experimental BOT (token name at the time) sale with a fixed swap auction. On March 15, 2021, Bounce announced a new funding round from notable investors such as Pantera, Coinbase Ventures, Blockchain Capital, and DHVC. This funding aims to expand its NFT branch and upgrade its three other branches: Bounce Decentralized, Bounce Certified, and Bounce Polkadot.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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