- Purpose: Raise Protocol Owned Liquidity (POL) for Silo DAO
- Platform: Gnosis Auction (Ethereum | Chain ID: 1)
- Model: Batch Auction — Tokens are allocated to orders with highest bids. Winners pay one price per token; EXAMPLE ONLY, If you bid $2/token and the clearing price ends up being $1/token, you only pay $1/token).
- Start Date: 3:00 PM UTC, December 6, 2021
- End Date: 3:00 PM UTC, December 9, 2021
- Winners cam claim $SILO tokens immediately after the auction closes
- Order Cancellation: Orders can be canceled anytime before 3:00 AM UTC, December 7, 2021 (first 12 hours of the auction)
- Accessing Auction:
https://gnosis-auction.eth.link/#/auction?auctionId=98&chainId=1
- Auctioned Token: 100 million $SILO
- Bidding Token: ETH
- Minimum Price per Token: $0.10 denominated in ETH
- Minimum Amount per Order: $200 denominated in ETH
- Wallet Requirement: MetaMask Wallet or WalletConnect for mobile wallets
- Whitelist your wallet address to participate
Token Release Summary
- First 6 Month circulation: 102,000,000 $SILO
- Max. Supply over 4 Years: 1B $SILO
- Auction tokens are available immediately to claim — no lockup or vesting
- Lockup Terms for Team & Investors: From 6 TO 12 Months
- Vesting Terms for Team & Investors: 24 TO 48 Months
Participation Steps
Before the auction
Preparations before the auction starts:
- Whitelist your wallet address.
- Fund your whitelisted wallet with ETH to bid and pay for gas..
During the auction
- Visit the auction page and connect your whitelisted wallet address.
2. Start bidding
- Place the cursor in the Amount section and enter how much you are willing to spend in ETH.
- Go to the Max Bidding Price section and specify what you feel is the value of a single $SILO token. Your bid needs to be equal or larger than Min. Sell Price.
- Confirm your bid.
- Submit a transaction and wait for confirmation.
- After confirmation, scroll to your Order History.
- You can cancel any order to adjust your bid in the first 12 hours of the auction.
Participants can cancel their bids during the first 12 hours of the auction. After 12 hours elapse, existing and new bids are final.
After the auction
- When the auction is over, the token price will be calculated. Everyone will pay one price per token— it is called the clearing price.
- If you bid below the clearing price, you will not receive tokens. Your refunds will be available to be claimed at this point.
- If your bid matches or exceeds the clearing price, you will get $SILO tokens based on the clearing price.
How The Batch Auction Works
The token batch auction allocates tokens starting with bidders with the highest bids down until all 100M $SILO tokens are are assigned to bids.
Here is how bids are filled and clearing price is calculated (1):
- Once the auction begins, bidders can place limit orders.
- At the end of the auction, the token’s clearing price is calculated.
- The smart contract sorts bids from highest to lowest price. Bids include a limit order for the token price and the amount of tokens to buy.
- Bids are gathered by the smart contract and sorted from highest to lowest bid. The smart contract works back from the highest bid, adding each bid’s amount of tokens until 100M $SILO tokens is reached.
- The price of the bid that reaches 100M $SILO tokens to sell is selected as the final clearing price for all participants.
- Bidders who specified a maximum price in their limit order that is equal to or greater than the final clearing price receive tokens at the clearing price.
- Bidders that specified a maximum price in their limit order that is less than the final clearing price do not receive the tokens being auctioned, but they can still withdraw their ETH amounts.
Clearing Price
if you bid $5/token and the clearing price ends up being $1/token, you will only pay $1/token.
Tips
The following is an edited excerpt from Become a Gnosis Auction Specialist
Place your order price up as high as you’re comfortable
Gnosis Auction does not settle the token at the price of your order (unless your bid is exactly equal to the final clearing price), but takes the lowest price of the valid orders as the final clearing price. Therefore, to ensure that your bid wins, you should set a higher-order price to be guaranteed a token allocation (you may pay a lower clearing price).
Keep an eye on the white dotted line
The white dotted line in the chart is an important indicator. This line changes dynamically. If you want to be included, keep an eye on this line. If your bidding price is equal to or lower than this line, you need to pay attention and judge for yourself whether you need to withdraw, adjust the price of the order and re-bid it.
Keep an eye on price movements after 100% sales
Once the Estimated Token Sold parameter reaches 100%, the Current Price becomes active and may even change significantly. That means your pending orders are in a state of flux. If you want your pending order to be included, it is best to keep a close eye on Current Price and react in time. If you can cancel your bid, then adjust the price of the order and re-bid. If you cannot, place a new order with adjust bid.
Refresh the webpage frequently
The key data you can see (such as the current clearing price estimate) are automatically refreshed after you initiate a pending order. However, if you do not place a pending order, the page will not be updated automatically. So, if you want to be up to date with the latest information, you’d better be diligent and refresh the page more often.
Don’t rush, think about it before placing an order
Gnosis Auction is different from LBP — You don’t need to rush to enter the market early. Therefore, we must first carefully understand all the parameters of the auction, and then carefully consider how to bid, and then place the order after considering it. Although Gnosis Auction supports order cancellation, you must still pay Gas. So, think before you act.
Benefits of The Batch Auction
Auctioning tokens through Gnosis Auction offers the following benefits:
- The auction closes with a single clearing price for all tokens, regardless of how much each bidder bids. In other words, the token will cost the same for everyone who in the auction. This is the fairest way for the community to establish a single floor value for the token before any token enters circulation.
- It provides a user-friendly bidding process. Bidders have time to determine their best token price over the course of the auction.
- The problem of frontrunning is minimized. Bots can’t purchase tokens only to sell them for a higher price during the auction.
- Fair and relaxed distribution of tokens rather than building FOMO and speculation. Bidders can save on gas because they don’t have to rush into participating in the auction.
How Gnosis Auction Compares to IDO/Auction platforms
Gnosis Auction’s batch auction mechanism offers a unique approach to user protection (2).
FAQs
Q1: Do I need to whitelist my wallet?
Yes. You can do that here.
Q2: What are the dates for the Silo token auction?
It starts December 6 and closes December 10. We will announce the start and end time soon.
Q3: Should I place high bids in the auction?
You can safely place high bids for two reasons:
A- Everyone will pay the same price per token at closing. If you bid $5 per token and the closing price ends up $1, you only pay $1.
Example:
- You place a limit order of $2,000 (worth of ETH)
- You bid $5 (worth of ETH) per token in the order
- If the clearing price ends up $1 (worth of ETH) per token
- You will get up to 2,000 tokens
B- When tokens enter circulation, they all have a single floor value of $1 because ~100% of circulating tokens come from genesis token auction. These tokens will be the only tokens circulating in the first 6 months from the auction.
That is why we have chosen Gnosis Auction in the first place — to establish a strong community around SiloDAO.
Q4: If my bid is successful, when can I get my tokens?
You can get them as soon as they are available on December 10.
Q5: How many tokens will be available?
There will be 100 million tokens in the auction, totaling 10% of all the Silo tokens. These tokens will be the circulating supply for the first 6 months.
Q6: Is there a minimum price?
Yes, approx. $0.10 in ETH is the starting bid price. The minimum price will be denominated in ETH.
Q7: Is there a maximum price?
No, there is no maximum, leaving you to bid whatever you feel a token is worth.
Q8: Am I guaranteed an allocation if I just bid the minimum price?
It is unlikely. In fact you are almost guaranteed not to receive an allocation because clearing prices are almost always above the starting bid. It is based on what people think the token is worth, and usually people don’t bid just the minimum.
Q9: Why did you choose this model for Silo token sale?
- Everyone pays the same price per token at the end of the auction.
- It establishes a fair value for the token by the community before any token enters circulation.
- It is manipulation-resistant, transparent and permissionless.
Q10: How do I know that the auction isn’t being manipulated?
The clearing price is based on all of the bids, and that final price is what will determine the auction winners. The clearing price will be the cost of their tokens, not their actual bid price.
Since most auctions are manipulated by bidding high, cancelling, then slipping in again for a lower bid, we’ve eliminated that possibility by not allowing bids to be canceled after 12 hours from the start of the auction.
Q11: Is there a reason I shouldn’t just wait for the end of the auction and then bid?
While the clearing price may seem easier to predict closer to the end, you run a greater risk of not getting to bid. If everyone takes this approach, the network could get bogged down, so your bid may not be recognized.
Q12: What if I don’t win the auction?
If you bid below the clearing price, you won’t receive tokens, but you can reclaim funds you allocated in your bid.
Q13: Are multiple bids allowed?
Yes. Our bidders are welcome to make multiple bids at different prices. Just be aware that the transaction fees can be costly, so you will probably want to keep your bids strategic and to a minimum so that you don’t spend too much on Gas fees.
Q14: If I’m successful, how will my allocation be calculated?
The calculation for token allocation is your ETH committed divided by the clearing price.
For example, if you commit 1ETH and the clearing price ends up being 0.00022 ETH, you will likely be allocated 4,545 tokens (1/0.00022=4,500).
Q15: What if my bid is the same as the clearing price?
If your bid equals the clearing price, you will probably have some tokens to claim, as well as some unspent funds.
Q16: If I’m not happy with a bid, can I cancel it?
You can only cancel bids in the first 12 hours of the auction. Any bids placed 12 hours after the commencement of the auction cannot be cancelled.
Q17: Is there a vesting period?
No. You can claim your tokens immediately after the auction is settled.
Q18: Is it on CoinMarketCap or Coingecko?
No, the token is not minted yet.
