How pre-sale auction works on Focus? (Free)

A Complete Guide on how to participate in token sale auctions.

By @TheRenaissanceMan

Saw many presale orders bidding way too much than needed, that if they had known how it works can make better trades. So I created this guide on how presale bidding works and how to participate in it.

The AMM when first created makes multiple sell orders where the price increase constantly (known as order-spacing) and at each price level there is x amount of coins. See Image below taken from @CreativeG AMM. you can find this at user profile > token tab > AMM tab.

Now based on this AMM let’s see the different Scenarios to understand further.

First Scenario: There are no other bidders than you

If there are no bidders other than you (which is not a good sign but just for example), then you bid at what exactly the AMM is asking for to get the cheapest price.

So you will have an order that looks like this for the example on the Image.

• 0.0010$ for 1000 coins
• 0.0011$ for 1000 coins
• 0.0012$ for **1000 coins **and so on until you reach the amount you want.

 

Second Scenario: There are other bidders.

In this case you don't buy at the price the AMM is asking for as there are other bidders who are willing to buy at a higher price than the AMM asked. At launch the AMM will start filling the bids from the highest to Bottom. which means, the initial AMM price (The lowest sell price) is matched with the highest bid price.

let’s assume the highest bid is 0.01$ for 2000 coins.

• The AMM will match this with the initial AMM sell price (1000 coins for 0.001$, see image above). As 0.01$ (Bid price) > 0.001$ (AMM initial price), the order will be filled. But it is filled with 0.01$ (The bid price), more than what the AMM asked for. (The extra money the AMM earned by selling for higher price that is explained by @nader here).

• Now the first 1,000 from the 2000 of the highest bid is filled.  
  The AMM then goes to second sell price level in the AMM (**0.001098$, **see image above). As 0.01$ (highest bid) is > 0.001 (Second level AMM sell price) the order will be filled again (at 0.01$ price).
  
  Now the AMM is done with the highest bid. it will move to the second highest bid. By the time it goes to the second highest bid, the lowest two sell orders (By the AMM) are already gone. So, the AMM price when it reaches the second highest order is 0.00121$ (Third level sell price in AMM, see image). If the 2nd bid price is > than the increased AMM sell price, it will be filled. The AMM will continue to fill the prices down to the bottom in this manner.
  
  So, when it is your turn in the bidders list, if your bidding price is < the increased AMM price, your order will not be filled (and so the rest of the orders below you, as they are even lower)

In this scenario you will need to check the highest bid and the AMM price right after the highest bid is filled. And there are two cases.

Case 1 The current Highest bid price is > The AMM price once the highest bid is filled.

Let’s assume 2000 coins for 0.01$ is the highest bid

you first check the price of the AMM after the first 2000 coins are filled (After the highest bid is filled) by hovering over the AMM sell orders starting from top and watching out for the Size you want.

In the above example, the price after the 2000 size is 0.00121. We assumed the highest bid to be 0.01$ for the first 2,000 Coins. But the next AMM prices after the 2000 coins are filled will be 0.00121$ which is much less than the highest bid price. So, you don’t need to fight for the highest bid, you will just bid to buy the next cheapest prices of the AMM.

Assuming you want to buy 2000 coins, You will submit an order

0.001210 $ for 1000 Coins

0.001331 $ for 1000 Coins

but as submitting for each price level might be a tiresome, you can also merge them at little cost.

0.001331 $ for 2000 Coins

 

Case 2 The AMM sell price once highest bid is filled > The current Highest bid price

Let’s assume the highest bid is 10,000 coins for 0.001$ each. and the following AMM.

You hover over the AMM list until you see a size of ~10,000 as shown below.

By the time the AMM is done filling the 10,000 coins for the highest bid, the AMM price is going to be 0.00259 Which is greater than the highest bid (0.001$). So you should bid the highest price to get cheapest price.

 
Tips

• In a real bidding, the bids change a lot at the last second. So be there at the last second to adjust your bidding accordingly and once you identify a good entrance point, you usually need to submit a higher price considering the market changes at last second.
• invest only what you can afford to lose as this is a high-risk market.
• Always check the all the token properties. Especially Trading fees, Founder supply and Founder lockup and other setting. You can find these at the right or the token graph on open fund (See image below)

•  Always make sure to close your bids once the bidding is over. Every order you make on the bidding is a limit order and it stays open even after the bidding is over. You can find them in the Open orders tab under the graph in Open fund. Or click view orders button at the same place to see open orders on all coins.

• Always be there when the market opens to make sure your bids have passed or otherwise to buy quickly at market price before price soars.

By @TheRenaissanceMan