Uniswap Labs has introduced a continuous settlement auctions (CCAs) protocol on its main web app to strengthen liquidity, The Block reported on Jan. 28.
First unveiled late last year, CCAs are an on-chain auction system designed to help discover prices for new and low-liquidity tokens. Users can find auctions, place bids and claim tokens directly through the Uniswap interface.
Uniswap Labs said liquidity formation is often conducted privately, creating information gaps and thin, unstable markets. It said CCAs run auctions fully on-chain to ensure transparent pricing, bidding and settlement.
According to Uniswap Labs, CCAs gradually introduce tokens to match real demand. It also said an automated system calculates a fair market price to help prevent attacks by trading bots. When an auction ends, buyers receive tokens and tangible liquidity is automatically added to Uniswap v4 trading pools.
Uniswap Labs stressed that auctions run fully on-chain, allowing participants to watch the market-formation process in real time.
Chi-gyu Hwang
delight@d-today.co.kr