GOEMON Docs
  • Welcome
  • Introduction
    • GOEMON protocol
    • Intents
    • Solvers
      • Advanced Optimization Algorithms
      • Role of Searchers & Resolvers
      • Computational Complexity & Real-Time Data Integration
    • Privacy Preservation
      • Sealed-Bid Batch Auction
    • MEV (Maximal Extractable Value)
      • Advanced Strategies for Mitigating MEV
      • Comparative Analysis with Existing MEV Blockers
    • References
  • How it work
    • Order Flow
      • Declarative Input to Atomic On‑Chain Execution
  • Adapter Framework
  • Strategies
    • Overview
      • Vault Operation
      • Yield Farming Management
    • Ecosystem Strategies
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  • Transaction Settlement Process
  • Optimized Blockchain Operations
  1. Introduction
  2. Privacy Preservation

Sealed-Bid Batch Auction

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Last updated 1 day ago

A sealed-bid batch auction is an on-chain settlement process in which multiple trades or intents are collected within a fixed time window (“batch”). Each solver submits a commit (i.e., a hash of their proposed solution) off-chain or on-chain, then later reveals the full details of their bid. The system picks the best solution and settles it atomically, ensuring fair competition and minimal front-running.

Transaction Settlement Process

1. Intent Submission & Batch Window Collection

  • Intent Submission: Users sign and submit requests, such as trades or yield flows, within a predetermined batch window (e.g., N blocks).

  • Visibility: Solvers can see user intents within the batch but not the specific solutions proposed by others.

  • Storage: Intents are stored either off-chain or in a minimal on-chain structure for reference.

2. Commit Phase

  • Hashing & Commitment: Solvers compute and hash details about the routes, fees, and constraints.

  • No Copying: Only the hash is submitted, ensuring competitors cannot see specific fees or routes.

  • Storage of Minimal Data: Ensures reduced on-chain data usage.

3. Reveal Phase

  • Disclosure: After the commit deadline, solvers reveal the details of their solutions previously committed.

  • Comparison: Solutions are evaluated based on fees, slippage, and yield outcomes.

  • Best Bid Selection: Routes with the lowest fee or highest user value are chosen.

4. Atomic On-Chain Execution & Settlement

  • Transaction Finalization: The entire batch is finalized in one transaction.

  • Atomicity: If any step fails, such as a loss of liquidity, the transaction reverts entirely.

  • Batch Settlement: Aggregation of multiple trades reduces on-chain interactions, optimizing gas costs.

Optimized Blockchain Operations

Security & Front-Running Mitigation

  • No Early Reveal: The commit-reveal process prevents solvers from front-running or copying others' solutions, ensuring fairness.

  • Gas & Cost Efficiency: The transaction either succeeds or reverts entirely, eliminating partial executions.

Fee Distribution

  • Reward for Winning Solver: The selected solver collects a fee, and users benefit from minimized gas fees, as settlement covers multiple trades.

By adhering to these structured phases, the system ensures efficient, secure, and cost-effective transaction settlement on the blockchain.