After an initial period of public auctions on Gnosis, we have partnered with Paradigm to bring the auctions to their platform and achieve more favorable execution for vault depositors. If you want to participate, take a look at this section.
Among the main reasons for the change is a structural limitation of Gnosis: it clears at the lowest possible price where demand meets supply. This means that if A is willing to buy half the supply for $10, and B is willing to buy the other half at $9, the entire auction will clear at $9.
Using the Paradigm system, we are able to run blind auctions, in all-or-nothing format. This helps to create more price competition between bidders and reduce gaming of the on-chain auction system, ultimately leading to better pricing.
As a fee structure, 4bps of the notional volume done by Ribbon go to Paradigm.