FAQ: Price Discovery Mode

How does Price Discovery Mode work?

Price Discovery Mode is powered by the Sealed-Bid Auction mechanism developed by Axis. This mechanism simulates a blind auction where all participants place private bids for a desired quantity of tokens at their preferred price. Once the auction is completed, the system decrypts all bids and allocates tokens to the highest bidders, with the settlement price set by the last successful bid to be filled.

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Is the Price Discovery Mode secure?

The Sealed-Bid Auction smart contracts have been audited. Ramen will be getting an additional security audit done very soon.

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What if I place a bid with a very very high bid price just to secure allocation?

The higher your bid, the more likely your bid will win. However, place a bid price at which you're comfortable in paying for the optimal participation experience. In the event where majority of the participants adopt this strategy of placing exceeding high bid prices, the settlement price could end up higher than expected, creating an overinflated valuation for the tokens.

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What can I do if my bid did not win?

If your bid did not win, you can claim a full refund for the BERA you've contributed after the auction ends. You can purchase the token from the liquidity pool at a price similar to the settlement price shortly after the token launch is completed.

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Are there allocation limits per unique wallet?

No, there are no allocation caps. This means you may contribute any amount above the minimum bid size to the token launch.