Bounce Finance, a pioneer of new DeFi auction mechanisms, launched the proof of concept of its “mutant English auction” format on Friday at 10 a.m. ET.
The item on offer is a “Diamond Hand” necklace paired with two NFTs that Bounce calls a “tribute to the ‘Hodl’ philosophy” – a reference to the oft-used meme of crypto holders across thick and thin having “diamond hands” “.
The auction system is not intended to compete with auction houses, CEO Jack Lu told Blockworks.
“We have wanted to work with Christie’s and Sotheby’s for a long time,” Lu said, adding that they have been very conservative. “But I think it’s a good opportunity for us to experiment.”
The necklace features a 5.5-carat lab-created diamond at its center, cradled by a hand on a 14-carat diamond chain.
Starting at a floor price of 5 ether (approximately $8,300), bidding will increase in 3% increments until no higher bids are placed within 24 hours.
Auction mechanisms reward early bidders because subsequent bids not only reimburse unsuccessful bidders’ gas fees on the Ethereum mainnet, but also generate a small bonus.
The necklace is designed by artist Nahiya Su and produced by FOUNDO, which describes itself as a Web3-native jewelry brand.
The final winner will receive a pair of NFTs – including one embedded into the necklace using a near-field communications chip – and a second commemorative NFT designed by a Sotheby’s featured surrealist artist called 1don’t know.
Bounce’s goal is to apply its research into auction formats to a variety of DeFi use cases, including NFT, tokens and advertising spaces. Currently, four standardized auction formats, audited by Salus Security, are available to developers via an SDK.
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