Auction Launcher
The Auction Launcher is responsible for launching an approved auction and providing more accurate pricing information for it.
A DTF is NOT required to have any Auction Launchers, as auctions can be launched permissionlessly (as long as the DTF and auctions are configured correctly).
Expected Actor
Because this role takes on a more ministerial job, it can be held by a trusted multisig or EOA.
While any Auction Launcher should be trusted, they can only modify the pricing information within the bounds set by the Auction Approver, thus limiting the amount of damage from mistakes or a rogue actor.
Abilities
- Open auctions
- Close auctions
- When opening an auction, optionally alter parameters of the auction within the approved ranges
Parameter Alterations
The Auction Launcher has limited ability to alter the parameters of an auction.
Buy-Token limits / Sell-Token limits
The buy- and sell-token limits are set by the Auction Approver in such a way to give the Auction Launcher enough leeway to open an auction that can more accurately result in the target index weights that were initially intended by the Auction Approver. This is normally done for DTFs that weight assets according to their value (e.g., value in dollars), rather than the number of units of each asset.
In the case of "tracking" DTFs (DTFs that regularly rebalance to target a specified index of asset amounts), the buy- and sell-token limits are set to specific values instead of ranges. This is because the goal of a tracking DTF is to track the index as closely as possible, so there is no need to have the flexibility to adjust the limits.
Pricing parameters
The auction's start and end prices are generally set by the Auction Approver to allow the Auction Launcher enough room to open an auction within the desired price range, while accounting for potential volatility between the auction approval time and auction start. The Auction Launcher only has the ability to raise the start and end prices from their initially approved values.
If the asset buy-token/sell-token price appreciates significantly between auction approval and auction start, the Auction Launcher can raise the start and end prices to ensure that the auction can still be opened within the desired price range. However, if the asset price depreciates significantly (below the end price), the Auction Launcher can not lower the price bounds, and so they must open the auction as is, or wait for a new auction to be approved that might better capture the expected volatility.
Time-to-live
The time-to-live is set by the Auction Approver in such a way to give the Auction Launcher enough leeway to open an auction that can more accurately result in the target end weights that were initially intended by the Auction Approver.
Limitations
- Can only raise start/end prices within the bounds set by the Approver
- Cannot alter other auction parameters (e.g., TTL, expected volatility)