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Always-on delegated auction service (single head)

The always-on delegated auction is a persistent service for DApps that runs multiple auctions on layer 2, using a single Hydra head. This enables an as-a-service business model.

Application design

This page describes a proposed service, not a release-tested integration. Deposits and decommits allow a head to remain open across auctions, but the auction contracts and service still need their own implementation and audit.

Design requirements​

  • Define how auctions isolate their assets and state within one head.
  • Wait for deposit finalization before accepting a bid backed by those funds.
  • Settle completed auctions through decommits, with a close/fanout fallback.
  • Retain signed results and explain what bidders can do if operators censor requests or stop signing.
  • Keep every output compatible with L1 and stay within the head's size limits.

A signed snapshot proves the operators agreed to a state. The auction validator and recovery protocol must establish that this state satisfies the auction's rules; signatures alone do not provide a remedy for every failure.