7.2 Marketplace Bidding System

For assets seeking broader price discovery, Parax offers a sealed-bid auction and continuous liquidity pool mechanism within its native marketplace interface. Each tokenized asset can be listed in one of multiple pricing regimes, including fixed-price, Dutch auction, or reserve-based sealed bidding. These mechanisms are implemented via modular market contracts, allowing asset issuers to specify auction logic, minimum bid increments, bid validity windows, and slippage tolerance.

Sealed-bid auctions are conducted through commit-reveal schemes that obfuscate bidder identities and values until the conclusion of the bidding period. This approach mitigates frontrunning, ensures fair competition, and preserves price integrity in thinly traded markets. Upon auction completion, the winning bid is executed via atomic settlement, and the Parax registry updates the asset’s ownership and custody metadata.

For fractionalized assets, liquidity is aggregated into automated market maker (AMM) pools modeled on Uniswap v3-style concentrated liquidity. These pools enable price-efficient swaps between ERC-20 fractional tokens and base currencies such as ETH, USDC, or stable RWAs. LP positions are tokenized and composable, supporting yield generation and governance participation for liquidity providers.

The marketplace infrastructure is permissionless and interoperable, allowing third-party platforms to surface Parax-listed assets and extend the reach of primary liquidity across RWA aggregator ecosystems.