Bidding Agency
Dynamic Liquidity for Omni-Chain Trading
The Bidding Agency is PicWe’s innovative model for on-demand liquidity, enabling users to trade assets across blockchains efficiently and securely. Unlike traditional liquidity pools, liquidity is only provided when a trade order is placed, making capital usage far more flexible and efficient.
How the Bidding Agency Works
Order Placement and Visibility
Users place a trade order on their original chain.
The order is broadcast to the target chain, visible to all participants.
Dutch Auction Pricing
Orders are priced through an open Dutch auction.
Users set slippage, which influences how the price adjusts during the auction.
Arbitrage Execution
When an opportunity arises, the Bidding Agency provides the required tokens.
In return, it receives the user’s locked collateral.
Key Features of the Bidding Agency
No Long-Term Capital Commitment
Liquidity is provided on-demand, not locked in a pool for extended periods.
Adapts to real-time trading needs, increasing efficiency.
Adaptive Liquidity Provision
Supports multiple token types based on user orders.
Liquidity providers can earn rewards across various trading pairs, not just one.
Redefining DeFi LP Models
Enhances capital efficiency by supplying liquidity only where needed.
Represents a practical step toward DeFi 2.0, making liquidity more responsive and dynamic.
Benefits
Enhanced Capital Efficiency: Liquidity is used where it’s needed most.
Flexible Earnings: Liquidity providers can participate across multiple pairs.
Decentralized and Secure: Smart contracts manage funds, keeping user assets fully under their control.
User-Provider Synergy: Users gain access to flexible liquidity, while providers optimize rewards.
Analogy: CATM as a Global Port Container System
Purchase a container at any port → Receive certificate of ownership.
Sell the certificate later for profit or retrieve the goods.
CATM and the Bidding Agency operate similarly, letting assets move seamlessly without bridges, while remaining securely locked in smart contracts.
Conclusion
The Bidding Agency model maximizes liquidity efficiency, benefits both users and providers, and supports PicWe’s vision of DeFi 2.0: a fully decentralized, dynamic, and interconnected omni-chain ecosystem.
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