Tailored Auctions
Onchain token launches powered by Uniswap Continuous Clearing Auctions
Tailored Auctions are Umia's onchain token launch mechanism. They provide a fully customizable, transparent way for projects to raise capital while ensuring fair price discovery and deep initial liquidity.
At their core, Tailored Auctions are built on Uniswap's Continuous Clearing Auctions (CCA), a permissionless protocol for bootstrapping liquidity and discovering fair market prices for new tokens.
How Continuous Clearing Auctions Work
CCA is designed around three foundational principles:
Onchain-Native Execution
The entire auction runs onchain. Pricing, bidding, and settlement happen transparently with no gatekeepers or offchain deals. Every participant has equal access to the same information.
Gradual Price Discovery
Token supply is distributed over time through a continuous clearing process. This incentivizes early bidding, reduces sniping, limits volatility, and helps the market converge toward a fair value over the auction window (typically 7 days).
Automatic Liquidity Seeding
When the auction ends, proceeds automatically create a Uniswap V4 pool at the discovered price. There's no need for the team to manually set up liquidity, it's handled by the protocol.
The Auction Process
Setup
The project defines the token quantity for sale, starting price parameters, and auction duration. Additional customization is available through audience targeting (via zkTLS), allocation caps, and refund logic.
Bidding
Participants submit bids specifying their maximum price and total spend. Key mechanics:
- Bids are non-withdrawable while within the acceptable price range, but can be withdrawn if out of range.
- Users may place multiple bids throughout the auction period.
- Each bid automatically distributes across remaining auction blocks using the same maximum price threshold.
Clearing
At the conclusion of each block, the protocol establishes a single market-clearing price: the highest price at which all available tokens for that block are fully sold:
- Higher bids receive priority.
- Bids matching the clearing price fill proportionally if oversubscribed.
- All successful bidders in a block pay the same clearing price.
Price Dynamics
As bids accumulate while per-block supply remains fixed, clearing prices either remain stable or trend upward. Early bidders benefit from better average prices since their bids fill during earlier, lower-priced blocks.
Settlement
Once the auction concludes, proceeds automatically seed initial Uniswap V4 liquidity at the discovered equilibrium price. Tokens and remaining funds are distributed to participants.
Customization Options
Tailored Auctions give founders significant control over their token launch:
Chain Selection
At launch, Ethereum and Base are supported, with additional chains planned.
Umia is EVM-compatible and supports deployment across key ecosystems.
Audience Targeting
Founders can conditionally restrict who participates in their auction using zkTLS verification through the Umia browser extension. This allows targeting specific communities (e.g., active GitHub contributors, holders of specific tokens, users with certain reputation scores) without linking personal identity to wallets.
For details, see Umia zkTLS Extension.
Allocation Buckets
Founders can designate specific portions of their token sale for different audiences. For example, a project might reserve the first days of the auction exclusively for early community members, then open to a broader audience.
Caps Configuration
Per-participant allocation caps, total raise caps can all be configured to match the project's specific needs.
For Any Stage
Tailored Auctions aren't limited to first-time launches. Whether this is your first funding event or you've already released a token, the auction mechanism can be adapted to your needs, enabling you to set up an Agentic Venture without blockers.
For projects coming from existing token structures, the Curated Track team will assist with converting to an Umia-governed venture while preserving existing stakeholder rights.
What Happens After the Auction
Once the Tailored Auction completes:
- Funds flow to the noncustodial treasury. Raised capital goes directly to the onchain treasury smart contract, not a team wallet.
- Liquidity is live. The Uniswap V4 pool is automatically seeded at the discovered price.
- Governance activates. Decision markets become available for strategic proposals.
- Monthly disbursements begin. The team's pre-configured operational budget starts flowing automatically.
Next Steps
Learn more about privacy-preserving audience targeting in Umia zkTLS Extension, how the on-chain verification contract works in Validation Hook, or skip ahead to understand how post-launch governance works in Decision Markets.