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Dust Auction

Dust Auction is a liquidation protocol for disposing of unwanted assets on a curve that increases over a specified time (similar to a Dutch Auction), such that other users are incentivized to acquire the assets as the discount on them increases.

Dust Auction

Created At

ETHGlobal Sydney

Project Description

Dust Auction offers a way for users to maximize the value they can acquire from getting rid of unwanted tokens using a Dutch auction.

Toxic assets can be bad debt, a bunch of dust on your wallets you want to get rid off at any price, or even actual physical tokenized toxic uranium in your backyard. It's a crosschain dApp with CCIP compatibility so people from other chains can buy the toxic assets, enhancing the range of buyers that can acquire the assets with minimal .

Users can create offers, which hold the amount of tokens they wish to dispose of as well as the timeline they wish to dispose of them on. The Dutch auction starts off and goes on for a select period of time (deadline) during which the slope of the invariant curve changes (n). As time approaches this given deadline, the price moves on an exponential curve, quickly discounting assets until there is competition amongst buyers to secure a price premium on the assets.

Dust Auction helps find a good outcome for both the buyer who receives tokens at a discount, as well as the seller who can dispose of assets that had little value to them to begin with.

How it's Made

Dust Auction was deployed on several testnet chains for the proof of concept including Ethereum Sepolia, Base Sepolia, Avalanche Fuji, Mantle Sepolia, Polygon zkEVM Testnet.

For the mathematical calculations, Barakman's solidity-math-utils was used ( as well as dapphub's ds-math (

Chainlink's CCIP was used on the chains it is supported - Ethereum Sepolia, Base Sepolia, Avalanche Fuji.

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