Bounce (AUCTION): A Web3 Auction Platform

Decentralization has been a focal point in the blockchain world for the last several years. It has supported application development, improved how payments are made, enhanced trading activities and more. It can also be used to bid on and transfer digital assets through decentralized auctions. While there are other seemingly similar platforms in use today, Bounce stands apart as a decentralized auction platform with unique capabilities and features.

Key Takeaways:

• Bounce is a decentralized auction platform that supports transactions for tokens, non-fungible tokens and various other goods and services.
• Bounce aims to transform auctions through blockchain technology, making them more transparent, efficient and accessible. This decentralized approach solves issues such as centralization, high costs and geographical limitations of traditional auctions.
• Looking to trade Bounce tokens? Bybit now offers the AUCTIONUSDT Perpetual Contracts for trading.

What Is Bounce?

Bounce’s fully decentralized auction platform uses blockchain technology to ensure more transparent, efficient and accessible auctioning, bidding and buying processes for web3 users. Since its launch in September 2020, Bounce has grown into one of the most popular decentralized auction platforms in the web3 ecosystem, particularly esteemed by buyers and sellers in the decentralized finance (DeFi) and NFT spaces.

Bounce Finance’s decentralized auction protocol is rooted in the principle of scarcity. It offers a competitive space for small-supply virtual assets to be auctioned. Users are able to create their own events for NFTs and token sales. More than that, the platform offers a variety of options for auctioning digital assets to suit various needs. The available types include English and Dutch auctions, sealed-bid auctions and fixed-price auctions. Through the platform, users are also able to benefit from the automatic execution of private or public over-the-counter (OTC) asset trading. 

Bounce uses its token, AUCTION, to complete transactions and for on-chain governance. In addition, the token can be staked to provide users with passive income through rewards, and liquidity mining is also available. Crowd loans are also available via Polkadot parachain bonds.

History of Bounce

In 2020, Jack Lu and Chandler Song established Bounce Finance with the goal of providing an improved swapping experience for both tokens and NFTs. Its first two auctioning pool types were fixed-price auctions and dynamic ratio swapping, and this has expanded over the last few years. Through various rounds of funding, the platform has received financial backing from Blockchain Capital, Coinbase Ventures, SNZ Capital, Fundamental Labs and several other notable investors. 

To encourage interest in Bounce, Coinbase established a quiz with a financial reward for those who spent a few minutes learning about the decentralized auction platform. The Bounce metaverse has been enhanced with new features and upgrades since its launch. In fact, a second version was released that changed the format of the decentralized auction listings and brought other improvements to the table. A third version, Bounce V3, was launched in February 2023, introducing several new features and improvements. 

What Does Bounce Aim to Achieve?

While there are other DeFi swapping platforms, most of them have been designed on the concept of infinite liquidity. Bounce, on the other hand, creates a competitive environment that is based on the scarcity of digital assets such as NFTs and tokens. The Bounce metaverse has been developed to improve the auctioning and trading of digital assets. By allowing users to create their own events and offering several unique types of decentralized auctions, users can more easily connect to interested parties. At the same time, bidders can easily search through active and upcoming events to identify the ones that meet their needs and interests. By doing so, Bounce takes the crypto concept of swapping to a different level.

In addition, the platform utilizes an information layer. Through this layer, users benefit from increased social interaction and have access to more information before making bids and completing trades. This information is provided in the form of data analytics.

How Does Bounce Work?

To start using Bounce, a user must first connect a crypto wallet. Supported wallets include WalletConnect, MetaMask, Ledger and others. A user who has assets to offer must first create an event. Once the new listing is posted, it is published for users to consider. Users choose their preferred auctions and make their bids. Once a winner is selected through smart contracts, the exchange is completed automatically.

Crowdloans, mining and staking activities are also supported on the Bounce ecosystem. Another aspect of the platform is Bounce OTC trading, which supports competitive prices with the benefit of no slippage for ERC-20 token trades.

Users can also take advantage of a price prediction tool built into the ecosystem. The interface supports price predictions for ETH, BTC, SNX, LINK and COMP. A user can create a prediction pool and other users can place bets on the accuracy of that prediction. Making bets and receiving rewards are done through the use of AUCTION.

Bounce is a cross-chain platform that functions with Ethereum, BNB Chain and others. As a result, users can easily and quickly swap their native tokens for ETH and a few other tokens. 

Bounce V1

An important aspect of the platform's first version was the establishment of governance. Bounce used to be governed by the community via BOT token holders. BOT was the original Bounce native token before the ecosystem migrated to AUCTION in 2021. The Bounce platform's community governance offers token holders the ability to suggest and debate changes as well as to implement them without the requirement of working with the Bounce team. 

In order to participate in governance, a user had to stake BOT tokens. This continues today with AUCTION staking instead. In addition, the original Bounce ecosystem functioned similarly to Ebay. The events for tokens and NFTs were discoverable by users through a list-style display. More than 6,500 auctions were completed through Bounce V1.

Bounce V2

Bounce’s second version transitioned away from Ebay-like listings and into a Google-like platform. The list display that was used in Bounce V1 gave way to a search bar on the first page of the listings. Searches can be made using pool details, auction types and token names. Bounce V2 also introduced Bounce OTC as an alternative to auctions. This feature enables users to sell and buy ERC-20 tokens without slippage or limits.

Bounce V3

With the launch of Bounce V3 in February 2023, Bounce completely overhauled its approach to auctions to adapt to an evolving web3 landscape. Bounce V3 entered new auction sectors, expanded marketplace offerings and forged new development partnerships. Fairness mechanisms were added to prevent fraudulent activity, and an innovative regret function for fixed swap auctions was introduced, allowing participants to withdraw their bids at any time. One of the most significant features introduced was Auction as a Service (AaaS).

Auction as a Service

Bounce's revolutionary Auction as a Service (AaaS) is transforming the auction landscape. This service offers a suite of tools, including user registration and verification, to streamline the creation of digital auctions. Auction hosts can tailor the setup to their needs while benefiting from the security of a decentralized, on-chain system. An upcoming plug-in will allow anyone to host a digital auction on their website with minimal impact on user experience. 

Bounce is committed to fostering fully decentralized, transparent and secure auctions that are user-friendly for both creators and participants. As the web3 ecosystem expands, Bounce is poised to remain a significant player in the asset trading arena.

Features of Bounce

At its core, Bounce is a decentralized auction protocol that provides users with several distinctive types of auctions. The platform supports a creator economy, so users are able to choose their preferred event type and establish new decentralized auctions. With notable differences between these types, it is important to understand their primary differences in order to fully appreciate the advantages of Bounce.

Fixed-Price Auctions

Fixed-price auctions are supported on the Bounce ecosystem. They are available for BEP-20 and ERC-20 tokens, and supported assets include tokens, NFTs, real-world collectibles and ad spaces. 

One distinguishing characteristic of this type of event is a fixed price that both the bidder and auctioneer have agreed to. Often, fixed-price auctions are preferred by auctioneers who have a solid idea of the value of their digital assets. Fixed-price auctions are executed automatically, and the exchange of assets between the two parties occurs simultaneously. 

An intriguing aspect of Bounce V3 is the regret feature, granting bidders the flexibility to join or exit the auction anytime during its duration.

Sealed-Bid Auctions

In sealed-bid auctions, bidders submit bids privately and ahead of the event's scheduled date. Unlike with open bidding, each person can only make one bid. On the event's date, all of the concealed bids are reviewed and the winners are selected via smart contracts. Smart contracts are used to automatically fill the orders from the top down until the assets have all been claimed.

Random Selection Auctions

In a random selection auction, the winning bid isn't determined by the highest offer. Instead, it's randomly selected, much like a lottery draw. This auction method is often used when the item up for grabs is in high demand, drawing a large number of bidders willing to pay a premium for it.

Order Book Auctions

In the order book auction setup, potential buyers and sellers place orders directly on the blockchain platform to buy or sell a specific asset. These orders are then paired based on certain criteria. The auction operates within a set time frame. Upon its conclusion, the paired orders are matched and the transactions are recorded on the blockchain, offering a decentralized, transparent and efficient mechanism for trading these assets.

Unlike conventional exchanges, where the order book is overseen by an exchange operator, in an on-chain order book auction the order book is stored on the blockchain and is accessible to everyone. This ensures the auction's transparency and security because all orders and transactions are recorded on the unchangeable blockchain ledger.

Playable Auctions

The playable auction offers a unique twist: Instead of your bid value, it's your performance in a specific game that determines your allocation. This auction is split into two parts. First, participants battle it out in a game challenge, and then they engage in the token auction. The individual orchestrating the auction handpicks a game and lays out specific rules, such as how many can win, the auction's time frame, the type of currency accepted and the token's conversion value.

Once the playable auction is underway, participants dive into the game. Their success in the game directly correlates with their chances of landing an allocation. By the time the game challenge wraps up, the highest scorers earn the title of winners and gear up to finalize their allocation in the following segment. This innovative method infuses excitement into the auction and ensures a level playing field, promoting transparency.

For projects eyeing initial DEX offerings (IDOs), Bounce Finance's playable auction presents a lively and interactive avenue. The onset of the IDO can be marked by a competitive game, in which participants hustle for a spot on the whitelist, driven by their gaming expertise. The project behind the IDO dictates the auction's span and determines the cream of the crop, for example the standout 50 gamers. This elite field then advances to the subsequent IDO phase, ready to purchase the project's tokens using the designated currency at a pre-decided rate.

Real-World Collectibles Auctions

Bounce allows individuals to convert their real-world collectibles, such as watches or bags, into digital assets on a blockchain network. This process is referred to as on-chain real-world asset tokenization. Participants can then set up auctions for their blockchain-based digital replicas of real-world collectibles. These auctions are carried out in a secure and transparent manner, facilitated by smart contracts that autonomously enforce the rules of the auction.

Auction winners can then claim the real-world collectibles by burning the corresponding NFTs, which symbolize the ownership rights to these assets. This mechanism ensures that only the legitimate NFT owner can claim the associated real-world collectible.

Advertisement Auctions

Bounce has introduced a novel concept, the Bounce advertisement auction, which merges blockchain technology with traditional advertising methods. This mechanism operates in two distinct ways: peer-to-peer (P2P) mode and pool mode.

P2P Mode

In P2P mode, sellers directly interact with buyers. The process begins with sellers creating advertising banners on their websites using provided tools, and converting these banners into NFTs. They then initiate an English auction, a type of auction in which the price ascends. The sellers determine a reserve price, an acceptable ad format and the duration of the auction. Buyers, on the other hand, assess the website traffic before deciding to bid and upload their content. Once the seller approves the content and format, bidding can commence. Upon completion of the transaction, the buyer's content is displayed on the seller's advertising banners.

Pool Mode

In pool mode, sellers create advertising banners and convert them into NFTs, just like in the P2P mode. However, instead of selling directly to buyers, sellers deposit the NFTs into a pool to generate income. These NFTs are then consolidated and auctioned off weekly for the upcoming week's ads. Buyers must prepare their ad content beforehand and submit it for approval to secure a bidding slot. The auction selects the top five to 10 highest bidders, and their content is displayed on the rolling advertising banners.

The seller's mining mechanism operates based on the total amount of money submitted by buyers in a week, multiplied by the website's seven-day traffic.

English Auctions

In on-chain English auctions, a minimum price is set and the auction is launched on a blockchain platform. The price is progressively raised, and the auction concludes at a predetermined time, with the highest bidder at that time claiming the digital asset. All bids are recorded on the blockchain, ensuring transparency and security.

Dutch Auctions

At Dutch auctions, the auctioneer establishes a ceiling price, which is a starting bid amount. The assets are auctioned off based on this ceiling price, but the price drops incrementally over time. This continues until all of the assets have been allocated to bidders.

NFT Sealed-Bid Auction Pools

Just as tokens can be auctioned through the Bounce ecosystem through several methods, the same goes for NFTs. One of these ways is through NFT sealed-bid auction pools. Each person who is interested in a rare NFT up for auction can submit one bid, and that bid is hidden until the event's scheduled date. When the date arrives, smart contracts are used to determine the winner or winners.

NFT English Auctions

An NFT English auction requires the auctioneer to initially establish a reserve price. The price may be as low as zero. The reserve price is the minimum price that the item being auctioned can sell for. After a bidder has submitted a bid for the reserve price, the auctioneer can request higher bids. Often, the increment amount of each price increase is established upfront. There is no time limit for an NFT English auction. The event ends when no bidders are interested in paying a higher price than the top bid.

NFT Dutch Auctions

NFT Dutch auctions also have an established minimum price for the item being auctioned. However, rather than the price increasing as bids come in, the price in NFT Dutch auctions decreases incrementally. The event ends once a bidder is willing to pay the current price.

NFT Random Selection Auctions

Another option supported on the platform is an NFT random selection auction. NFT lottery auctions start with the sale of tickets at a fixed price determined by the pool creator. Users must purchase lottery tickets with AUCTION. Those who purchase lottery tickets are entered into the contest for a chance to win NFTs offered by the auctioneer. A smart contract randomly determines the winning lottery ticket and transfers the auctioned NFT to the winner. The pool creator then claims the amount paid by the winner for the lottery ticket. Those who did not win the lottery can recoup the cost of their lottery tickets by simply claiming their principal amount back from the pool.

Bounce Recruitment (Previously Known as Metalents)

One of the newer features of Bounce Finance is Bounce Recruitment, previously known as Metalents. This is a freelance marketplace in the crypto space that functions similarly to Etsy, Fiverr and Upwork. Currently, Bounce Recruitment is used by crypto companies to identify and hire skilled talent with relevant experience. It is also used as a platform for those companies to spend their on-chain assets. Compared to other freelancer platforms, Bounce Recruitment doesn’t have extensive KYC restrictions and has lower fees, both of which lower the barrier to entry for those looking to explore a wide talent pool of freelancers with extensive knowledge of the web3 infrastructure and ecosystem.

Hybrid Account System

Bounce introduced a hybrid account system in its V3 upgrade. This system allows users to sign up in a traditional manner, such as with an email address and phone number. However, decentralized access is also provided. Users can opt to register as an individual, a company or an institutional investor before building their Bounce profile. Each of these user types comes with its unique benefits and account features, all equipped with social login features and an email address. 

Information Network

Post the V3 upgrade, users can now update their Bounce profile with details about their professional experience, education, investments and more. Users have the option to select from several available profile themes. Unlike LinkedIn profiles, Bounce profiles are interactive. Company profiles can also be enriched with details about its team members, fundraising activities, job openings, and other pertinent details. As a Bounce profile becomes more detailed, it opens up more opportunities for the user.

Bounce Lab

Bounce Syndicate

The V3 upgrade has added the syndicate investment feature. This type of investment involves a group of individuals pooling their resources together, with the group spearheaded by a syndicate lead who is responsible for sourcing and vetting investment opportunities. The lead also oversees the syndicate's investment portfolio. Syndicate members can decide whether or not to participate in specific investment opportunities.

Bounce Crypto Road Map

Since Bounce was founded in 2020, the platform has focused on enhancing its auctions and Bounce Recruitment. One of the most anticipated milestones Bounce is currently working on is its “Diamond Hand” Necklace auction, established in collaboration with FOUNDO. The auction is scheduled to launch in August 2023. 

Looking forward, the platform plans to launch a Real-World Collectibles Marketplace for web3 projects to create their own brand stores on Bounce, and to put tangible collectibles up for sale. Bounce will also be working on enhancing its AaaS protocol to streamline token launches for crypto projects. 

AUCTION Tokenomics

AUCTION is the native token for the Bounce ecosystem. This ERC-20 token is used for trading and auctioning transactions on the platform, and it also provides governance rights to those who hold the token. Those who hold more tokens have more voting power. In addition, users can stake their AUCTION tokens to promote their activities and increase their visibility, as well as earn rewards from the protocol fees generated. There will be more utilities of the AUCTION token as more features are added to the ecosystem in the future.

The max token supply is hard capped at 10 million tokens, and 6.5 million tokens are in circulation. The current total supply is at 7.64 million. 

AUCTION Price Prediction

As of Aug 8, 2023, the price of AUCTION is $5.10. The launch price was close to $25.50, and reached its peak of $70.44 on Apr 12, 2021. While the current price of AUCTION is well under its historic high, indicators reveal the possibility of a progressive price increase over the next decade. DigitalCoinPrice predicts AUCTION's price to be $11.98 by the end of 2023, increasing to $19.82 in 2025 and $24.86 in 2027. The price may continue to rise to $56.29 in 2030 and $106.29 by 2032.

Where to Buy AUCTION

Interested in trading AUCTION tokens? Look no further, as Bybit now offers AUCTIONUSDT Perpetual Contracts for trading. To get started, you need to first sign up for a Bybit account, fund it with cryptocurrency and navigate to the AUCTIONUSDT Perpetual Contracts page.

Is AUCTION a Good Investment?

AUCTION’s value has dropped by roughly $65 from its high. While this may give some cryptocurrency investors a reason to pause, the token has considerable potential as an investment. As the native token of the Bounce ecosystem, it is used for auctioning as well as to execute trades, purchases and sales. In addition, staking rewards are paid in AUCTION. The token can easily be swapped for ETH, which enhances its utility. As the Bounce platform further develops, user activity is expected to grow. Bounce has progressively been updated since its debut only a few years ago, and many notable platform updates are planned for the future.

While the daily fluctuations of any cryptocurrency can be extreme at times, the long-term expectation is that AUCTION’s value will increase. In fact, some experts predict that the token value may increase by more than $100 by the end of 2032. Because of this, AUCTION may be more suitable as a long-term investment opportunity. Of course, with all that said, it is still imperative for you to do your own research before investing in any cryptocurrency.

Closing Thoughts

Bounce Finance has revolutionized the decentralized auction space. Its innovative approach to auctions, combined with its dedication to transparency and decentralization, has made it a favorite among crypto enthusiasts. With features introduced in the Bounce V3 upgrade, the platform has further enhanced its offerings, solidifying its position as a leader in the DeFi space.

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