❱ Auction Houses

Introduction

Auction Houses are core smart contracts in the HAI Protocol that manage debt, surplus, and collateral through automated auctions. Whether you're an active participant or simply interested in HAI's stability mechanisms, understanding these components is crucial.

Types of Auction Houses

1. Collateral Auction House: Facilitates the sale of confiscated collateral from liquidated SAFEs, aiming to cover associated debts.
2. Debt Auction House: Auctions off the system's debt, offering to mint Protocol Tokens as rewards for debt settlement.
3. Surplus Auction House: Manages system surplus, conducting auctions (Protocol Tokens buybacks) to distribute excess funds.

Understanding these mechanisms is essential for navigating the HAI Protocol's automated balance and risk management features.