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Quantitative Finance · Glossary

What is Bundle bid?

Definition 25.2 Market Making and High-Frequency Trading · Chapter 25 — On-Chain Trading

A bundle bid is the payment a searcher attaches to a transaction bundle for its inclusion in a block, paid to the builder (directly or through the transaction’s priority fee) only if the bundle is included.

A first-price bundle auction for a $100 opportunity among searchers whose values are lower by their own costs, uniform between 0 and 20%: the builder’s share of the winning searcher’s value, and what the winner keeps, against the number of competing searchers (log scale); 20 000 auctions per point. Data: hf_onchain.auctions.
Figure 25.2. A first-price bundle auction for a $100 opportunity among searchers whose values are lower by their own costs, uniform between 0 and 20%: the builder’s share of the winning searcher’s value, and what the winner keeps, against the number of competing searchers (log scale); 20 000 auctions per point. Data: hf_onchain.auctions.
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