๐Ÿ”ถHow auction trading works?

Listing Ordinal for auction

As a seller, you can list your Ordinals for auction on TeleOrdinal. Here, you connect your Bitcoin and EVM wallets and list your Ordinal on the TeleOrdinal contract. To do this, you submit the transaction of your Ordinal on Bitcoin to the TeleOrdinal contract. You also need to prove to the contract that you are the real holder of this Ordinal. You do this by signing a message with the same Bitcoin wallet that holds the Ordinal. The validity of the signature is checked by the contract to ensure that you are the real owner of that Ordinal. Additionally, you determine the floor price for your Ordinal, which signals the market what the minimum acceptable offer is.

Bidding on Ordinal

Then, a buyer comes and makes an offer by sending her funds to the smart contract. Now, you can accept her offer by calling the smart contract, which locks the buyer's funds for a certain period. Here, the buyer provides her Bitcoin address to the smart contract, and you use this address to send the Ordinal to the buyer on the Bitcoin network. After you send the Ordinal and your transfer transaction receives 4 confirmations, a Teleporter collects your transaction, provides valid proof showing that this transaction is included on Bitcoin, and submits the transaction with proof to the TeleOrdinal contract.

Releasing buyerโ€™s funds to seller

The contract checks the validity of inclusion proof using the TeleportDAO bridge to ensure that this transfer took place on the Bitcoin network. Then, it checks whether you transferred the correct Ordinal to the correct buyer or not. Here, the contract verifies that the current transaction spent the Ordinal transaction that you submitted when listing your Ordinal and transferred the Ordinal to the correct recipient address.

If the correct Ordinal is sent to the correct address, then the contract accepts your transfer and releases the buyer's funds to your address. If not, the buyer's funds remain in the smart contract. If you don't send the Ordinal to the buyer before a specified deadline, the buyer can withdraw her funds from the smart contract as she didn't receive the Ordinal from you.

Last updated