Two days ago, OpenSea added a new way for sellers and buyers to acquire their crypto assets. Specifically, OpenSea introduced gas-free, eBay-like auctions that should allow sellers and buyers to get the most value out of their investments.
Giving More Options to the Users
OpenSea is arguably the biggest market for buying and selling crypto assets. Over the past couple of months, the platform has been coming up with the new ways for users to trade, buy and sell their assets. On January 8, OpenSea introduced private auctions, which allow users to arrange private auctions without leaving the secure environment of the OpenSea platform.
Two weeks later, OpenSea added a bulk transfer function, enabling users to buy and sell items in bulk. And now, thanks to the OpenSea’s most recent update, users can let the buyers compete for items and set the price of those items.
English Auctions on OpenSea
The best thing about English auctions is that the seller doesn't need to know the ins and outs of the market. If you own an item but find it hard to determine its value, you can offer it at a lower price. By the nature of English auction, buyers will bid on your item and raise the initial price, assuming that there's a demand for the item you're offering.
Unlike the Dutch auction, which requires that sellers and buyers know the market value of offered items, an English auction is more beginner-friendly. In some way, the English auction is more libertarian, in the sense that it allows buyers (instead of sellers) to determine the value of offered items. And as a seller, you don't have to know the market value of your items. Instead, you can set a lower price, and the market will drive the price up at your benefit.
OpenSea also added a function that automatically matches the highest bid with the sell order, thus exempting both the buyers and sellers from gas fees.
Here's how it works:
- A seller creates an auction by creating an off-chain sell order.
- OpenSea stores this order off-chain using their API.
- Buyers create buy orders the same way sellers do, off-chain. Then, buyers confirm their orders, and that they have enough funds to execute the buy order should they win an auction.
- When the sell order expires, OpenSea servers automatically match the highest bid with the order and execute the transaction.
Since the sellers and buyers confirm their buy and sell orders prior to their execution, and since the OpenSea platform automatically fetches data and matches the highest bid with the sell order, buyers and sellers don't have to be present and manually execute their orders. This not only exempts them from the need of paying gas fees but also allows them to go about their business, leaving it all in the capable hands of the OpenSea platform.