Here 📚 you would learn how auction works.
General Terms and Definitions in Marketplace Auction
| Term | Meaning |
|---|---|
| Bidder or Buyer | An individual who participates in bidding activity to purchase an NFT in the marketplace. |
| Seller | An individual who sells an NFT via an auction in the marketplace. |
| Wallet Address | EVM compatible Public Wallet Address |
| Starting Bid | Starting Bid is the Minimum value price, which further extends the auction by bidding the amount. |
| NFT Contract Address | ERC721/1155 compatible smart contract |
| Token ID | Token ID refers to the unique identifier assigned to an NFT within its contract address and can be provided in a range. |
| Auctioneer | An auctioneer is a person or entity responsible for conducting auctions, setting prices, establishing bidding increments, and managing the sale of items to the bidder. |
What is NFT Auction?
NFT auctions are a sale process where owners or developers list specifically non-fungible tokens for sale to interested buyers. Subsequently, buyers could place their bids on the auction according to the price at which they want to buy the NFT. It is important to ensure that the bid is higher than the minimum price established by the seller. When the auction ends, the listed NFT will be sold to the highest bidder.
Auctions work by putting up an item for sale alongside setting a minimum price and a specific period for sale. Buyers have to place their bids on the concerned item according to the price they want to pay for the item. When the auction ends, the highest bidder could buy the item at the price they bid for it.
NFT Auction Example - Standard Approach
Following is one type of Standard Approach for Auction enabled for sale.
- Starting Bid - $50
- Start Date & Time 4/4/2023 0:00:00
- End Date & Time 4/4/2023 12:00:00
Let's say following are the different users buying on different intervals.
| Username | Time of Buy | Purchase Price |
|---|---|---|
| User 1 | 4/4/2023 3:00:00 | $100 |
| User 2 | 4/4/2023 6:00:00 | $200 |
| User 3 | 4/4/2023 10:00:00 | $300 |
- This means that the starting Bid Price will increase by Placing Bid amount. When the auction ends, the highest bidder could buy the item at the price they bid for it.
Key note:
This approach involves starting the auction at a certain price and a specific period for sale. Buyers have to place their bids on the concerned item according to the price they want to pay for the item. When the auction ends, the highest bidder could buy the item at the price they bid for it.
Steps to follow
- Get all the Auctions Using CollectionBySlug API. To show Start Time, Endtime against auction with bid history use the API CollectionItemByID.
- Once Auction is Started Buyers Can able to Create Bid using CreateMarketplaceAuctionBid API. On Every action Use the getMarketplaceAuctionLot API to get the Details of Auction.
- Buyers Need to bid only when the iscurrent flag is false in getMarketplaceAuctionLot API. Once bid created higher than the last bid amout automatically the highest bidder address will be set to iscurrent true. The Bid amount need to be Set Like 50,100,150 likewise.
- Auction will be Auto extend if bid is placed at last 2 Minutes of Auction Endtime for 2 Minutes Extra upto 2 Hours
- Once the Auction is completed an Invoice will be generated and Email will be sent to the Winner. Winner will get the Highest bid amount details from Getmyinvoices API. We can Get the status of Invoice like AwaitingUserPayment, Pending, Expired and Paid using the Status Field.
- When The Payment is initiated We can use createPaymentmentod and CreatePayment API's with Respective Payment Method like CreditcardCheckout and CryptoPayment.
- For cryptoPayment once Transaction is completed in Blockchain Use the ConfirmCyptoPayment API to complete the transaction.
- For Creditcard Checkout once payment is completed Transaction will completed by checkout webhook.
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