Glossary
Dutch Auction
An auction format where the price starts high and drops over time until a bidder accepts. Common in NFT mints, MEV order flow auctions, and liquidations.
In a Dutch auction, the seller posts a high starting price and a declining schedule. Buyers wait for the price to fall to a level they are willing to pay and then claim. The mechanism finds the market-clearing price quickly and discourages last-minute sniping because the cheapest bidder wins.
Crypto applications: NFT mints (Art Blocks, Nouns DAO), MEV order flow auctions (CoW Protocol), and on-chain liquidation auctions in lending markets (MakerDAO's Dutch auctions replaced its older flap/flop design in 2021).