Tomorrow Auctions

Tomorrow Auctions are sealed-bid, single-shot, double-auctions, also known as "call-markets" where bids and offers are batched by an auctioneer for matching and execution at pre-specified times.

Tomorrow Auctions are sealed-bid, second-price, single-shot, single-price double-auctions, or "call-markets," where lenders submit offers to lend purchase tokens, and borrowers submit bids to borrow purchase tokens. The Protocol then determines some interest rate that clears the market (the clearing rate): lenders willing to lend below the clearing rate make a loan and borrowers willing to pay at or above the clearing rate receive a loan, in each case at the clearing rate. By batching many orders together at periodic intervals, double auctions increase liquidity and decrease transaction costs.