
USDD 2.0 (Earn Double Rewards with sTRX Vault)|Apr 19, 2025 03:42
2/2 🔨What is a Vault Auction?
⏳When a vault is liquidated, its collateral enters a Dutch auction, where the price gradually decreases over time until a bid is placed or the auction ends.
💡The liquidator can also participate in the auction and bid on the collateral.
📊Bidding Collateral Quantity = (Input USDD Amount / Auction Price).
📈Once you successfully bid on the collateral, you can potentially earn a net profit by selling it at the current market price.
💰Potential Net Profit = (Input USDD × Market Price) − (Input USDD × Auction Price) − Transaction Fees
👉Learn how to Auction: https://docs.usdd.io/user-guide/collateral-auction
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