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A leading DEX has launched a new on-chain auction mechanism, providing a new solution for the cold start of new coins.

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[Chain News] A leading DEX has recently introduced a new feature – Continuous Clearing Auction Mechanism (CCA), specifically designed to address the liquidity cold start problem for new coins and obscure coins.

This system runs entirely on-chain. Each block sets a uniform settlement price, with those bidding higher transacting first, and equal bids receiving shares proportionally. All successful bidders ultimately pay the same price, which is quite fair. After the auction ends, the funds raised will automatically establish a Liquidity pool in version v4, fully automated.

The first pilot project is Aztec, which also comes with an optional ZK Passport module - it can both protect privacy and verify eligibility. The project team can customize various parameters: how many coins to sell, what the starting price is, how long the auction lasts, and whether to sell in batches. The flexibility is maximized.

In simple terms, this provides a one-stop channel for on-chain price discovery and liquidity launch for new projects, which is much more transparent than traditional methods.

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blockBoyvip
· 13h ago
Wow, this mechanism is quite interesting. Finally, someone is seriously trying to solve the cold start problem. But it still depends on whether Aztec can really make it work; it's easy to talk about it on paper. I'm a bit curious about the automatic LP creation part. Could it be another liquidity trap? This is definitely much more transparent than the IDO model; at least the price is discovered on-chain. It feels like another big company is thinking about how to play people for suckers with new project party innovations. Customizable parameters are nice, but high flexibility also means that the project party can easily mess things up.
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SneakyFlashloanvip
· 13h ago
You're thinking a bit too much; it's still uncertain whether Aztec will succeed this time.
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BlockchainGrillervip
· 13h ago
Hey, this trap CCA mechanism is indeed interesting. Finally, someone is seriously addressing the long-standing problem of cold start.
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BlockchainFriesvip
· 13h ago
Hey, this mechanism does seem to solve quite a few pain points, finally someone is seriously doing a cold start. Aztec's trial run was not bad, but I'm worried it might turn into a shitcoin dumping machine later... If this thing can really price fairly, why do we need a ZK Passport? Just do a transparent auction and be done with it. Wait, regarding the automatic pool creation, will the Slippage be disappointing? That being said, compared to those private sale rounds playing people for suckers, on-chain auctions can indeed show a lot more.
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NotGonnaMakeItvip
· 13h ago
Sounds good, but early participants are still easy to play people for suckers...
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SerumSquirtervip
· 14h ago
Sounds good, but can this trap mechanism really solve the cold start problem? Or is it just another gimmick in the crypto world? --- Using Aztec as a test subject, let's see how it works, but it seems a bit unreliable. --- On-chain auctions are an idea, but I'm afraid there will be a bunch of Rug Pull projects flooding in later. --- No, I'm a bit worried about fully automated pool creation. Will the liquidity Rug Pull? --- The ZK Passport part is interesting, much more reliable than the Allowlist. --- Sounds nice, but we still have to see how many actual participants there are. If there's not enough hype, the mechanism won't matter. --- Is this thing friendly to retail investors, or is it just a game for big funds?
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