GBM launching new Auction features for the Aavegotchi community
We are thrilled to announce the release of several exciting new auction features for the Aavegotchi Auction House: Buy it Now, Starting Bid and Low preset.
Aavegotchi has been using GBM auctions for their NFT drops since 2021, and in December 2022 they released the Aavegotchi Auction House, allowing all members of the Aavegotchi community to list their assets for sale using GBM auctions. The Aavegotchi Auction House saw over $1,300,000 in bidding volume in the past 3 months alone, and we are happy to see significant growth in the ecosystem, with the $GHST tokens performing very well recently.
The new GBM auction features are all inspired by or have been directly requested by the Aavegotchi community. These features give sellers more control over their auctions, restrict the impact of bots, and provide sellers with more liquidity whilst retaining all of the benefits of GBM for bidders.
When creating a GBM auction listing, sellers are now able to add a “Buy It Now” option, which will appear on the auction page. Bidders can either purchase the item right away at the Buy It Now price, or place a bid as normal. This feature is not new to the auction industry and has been used by Ebay since 2000, but it is the first time that it is offered for a GBM auction.
The Buy It Now option is displayed and available as soon as the auction is scheduled. Once the auction has started, the seller has the option to lower the Buy It Now price, but not to increase it.
If someone opts to buy the item with Buy It Now, the seller does not have the ability to cancel it, as the transaction will happen instantly. The fees paid for a Buy It Now auction are the same as the normal GBM auction fees. When a buyer uses the Buy It Now price option, the incentives for previous bidders are paid from that amount, so every bidder gets their incentives and the seller receives what is left after incentives and selling fees, like a normal GBM auction.
The Buy it Now feature adds excitement to an auction as an item can get “sniped” at any moment for the Buy it Now price, and it gives time-sensitive buyers the opportunity to buy the item right away, for a premium.
The implementation of the features works to ensure a fair bidding process whilst retaining the gamified and incentivised auction model that GBM is known for!
When creating a GBM auction listing, sellers now have the option to set a “Starting Bid”, which is the minimum amount the first bid must be. If no one bids at least the starting bid, the auction ends with no bids.
To set a starting bid, the seller must pay a listing fee of 4% of the starting bid when creating the listing. The listing fee % is the same as the selling fee, and the amount paid at listing is deducted from the selling or cancellation fees. So in the end, the seller only pays the listing fee if the auction ends with no bids.
This listing fee structure incentivizes sellers to set realistic starting bids, because otherwise the auction may not attract bidders, end with no bids and the sellers will be left with the listing fee
When creating a GBM auction listing, sellers are now offered a new GBM incentives preset they can use for their auction: “Low (0.5%-2%)”. This preset rewards bidders with an incentive between 0.5% and 2%, depending on how much bigger that bid is to the previous bid. Like with other GBM presets, the maximum return (here 2%) is reached if the bid is at least double the previous one.
This Low preset is well suited for more liquid assets which need less price discovery than some more rare items, it allows sellers to retain more of the winning bid with less being distributed to bidders. With this preset, a seller will have to give away to bidders an estimated 6% of the winning bid in the theoretical ‘worst’ bidding scenario.
To celebrate the introduction of the new GBM auction features, we’ll be hosting a special auction!
In order to demonstrate the new features, we will be auctioning a GODLIKE ‘Staff Charming Schematic’ on the Aavegotchi Auction House. The auction will start on the 25th April 15:00 UTC and will last for 2 days. The auction will have a Low (0.5%-2%) incentive level, a Starting Bid and a Buy it Now price!
A link to this auction will be posted on our Twitter.
We look forward to seeing the Aavegotchi Community’s response to the new features and welcome any feedback on them.
Happy bidding!
