Auction Mechanics

XGA's Dual Auction System

Discover how XGA's innovative dual auction architecture maximizes validator revenue through sophisticated Augmented Uniform Price Auctions and efficient Call Market mechanisms.

Augmented Uniform Price Auction
Primary Market
Elastic supply curve for optimal pricing
Multi-unit bidding for complex demand
Advanced allocation rules
Prevents severe underpricing
Call Market (Discriminatory)
Sequential Processing
Price-descending bid processing
First-come allocation rules
Individual bid pricing
High revenue certainty

What is XGA?

Comprehensive Platform

Optimized validator revenue through sophisticated, extensible gas auction systems

Multi-Layer Architecture

Optimism-based Rollup, smart contracts, consensus sidecar, and Open Games engine

MEV Optimization

Creating a competitive MEV market to maximize validator returns

XGA revolutionizes the MEV landscape by providing validators with a sophisticated platform that captures previously lost revenue. Through our extensible auction system, validators can achieve up to 57% more MEV revenue without additional technical overhead or slashing risks.

Auction Architecture Overview

XGA implements two complementary auction mechanisms to maximize efficiency and validator revenue

Bidder Submission

Multi-unit (quantity, price) pairs submitted by searchers and validators

Auction Selection

Dynamic choice between uniform price and discriminatory mechanisms

Revenue Optimization

Maximized validator returns through sophisticated allocation algorithms

Block Structure

XGA implements a bifurcated block structure that optimizes transaction ordering and maximizes value extraction while maintaining fairness for all participants.

TOB (Top of Block)

High-priority transaction zone

Reserved for time-sensitive MEV transactions requiring immediate execution

ROB (Rest of Block)

Standard transaction zone

Allocated for regular user transactions with standard priority levels

TOB

Top of Block

ROB

Rest of Block

XGA's bifurcated block structure

Key Features

Auction Mechanisms Compared

Augmented Uniform Price

Key Features:

  • All winners pay the same market-clearing price
  • Elastic supply curve prevents severe underpricing
  • Alternative allocation rule for excess demand
  • Reduces winner's curse effects

Mathematical Foundation:

Supply Function:

S(p) = ap^n for p < p'

Where elastic supply reduces underpricing risk

Supply Curve Visualization

Elastic Supply Curve

Concave shape prevents low pricing

Performance Comparison

Theoretical and empirical analysis shows both mechanisms excel in different scenarios

Efficiency
95%+

Uniform Price

92%+

Discriminatory

Revenue
Variable

Uniform Price

Higher

Discriminatory

Processing
Complex

Uniform Price

Simple

Discriminatory

Note: Neither mechanism is definitively superior - selection depends on market conditions, demand characteristics, and validator preferences.

Ready to Optimize Your Validator Revenue?

Experience the power of XGA's dual auction system and start maximizing your MEV revenue today.