How Gavel Works

Gavel runs token launches using Continuous Clearing Auctions (CCA) — a mechanism that sells supply over time and clears a shared price continuously (block by block). This removes most timing games and lets the market discover a price naturally.

The core pieces

1) Supply streams over time

Instead of dumping all tokens at once, the auction releases tokens gradually. Each block has a fixed amount of supply available (based on the launch configuration).

2) Bidders submit two numbers

To participate, you place a bid with:

• Spend: how much you want to commit (in the raise asset)

• Max price: the highest price you’re willing to pay

You can bid at any time while the auction is live.

3) Each block clears at one price

At the end of every block, the auction sets a clearing price:

Clearing price = the single price where that block’s supply can be sold.

What happens next:

• Bids with higher max prices get filled first

• Bids at the clearing price fill next (pro-rata if needed)

• Everyone who fills in that block pays the same price

If the clearing price rises above your max price, your bid simply stops filling until it’s back in range.

The flow (simple version)

Step 1 — Configure the auction (teams)

A launch sets:

• sale size (tokens for sale)

• start time + duration

• floor price / guardrails

• supply release schedule (how supply is emitted over time)

• raise asset (choose one: ETH / USDC / USDT)

• unsold token handling (burn / return / treasury)

• optional curated controls (allowlist / per-wallet cap / private bidding)

Step 2 — Bid (participants)

You place a bid with:

• spend amount

• max price

You don’t need to be first. Your bid is evaluated over time as blocks clear.

Step 3 — Clear and settle (protocol)

Each block clears at one price and allocations accumulate over time. When the auction ends:

• allocations finalize

• tokens become claimable

• any refunds (if applicable) become claimable

Liquidity and trading after the auction

When the auction completes, proceeds are used to seed liquidity programmatically at the discovered price:

• liquidity is created on Uniswap v4

• depending on the launch configuration, this can happen via Gavel or Clanker routing

The goal is simple: trading starts immediately at a price the market discovered, not a price someone picked.

What Gavel changes vs typical launches

• No single “first block” moment that decides everything

• Less advantage for speed (valuation matters more than latency)

• Transparent allocation (bids, clearing prices, settlement are onchain)

• Cleaner liquidity start (liquidity seeded automatically at the clearing price)

Key terms (quick)

• Clearing price: the shared price per block where supply sells out

• Max price: your personal limit — you fill only when clearing ≤ max

• In range / Out of range: whether your bid is currently eligible to fill

• Settlement: final allocation + claim/refund at auction end