Thanks for pointing it out. Just a minor detour in the execution of the transactions, not a flaw in the fundamental mechanism itself.
So the exact error was in overcounting/double selling Ryan's ETH, going beyond the 5 ETH he wanted to provide. This left him oversold, with no ETH and an imbalance of assets.
The fix is removing that last unnecessary ETH sale in P's bid. Then Ryan correctly sells just 5 ETH to Arhat, gets USDC, and retains a sound position.
I think there's something wrong with the example of Frequent Batch Auctions:
- 5 ETH sold from Ryan to Arhat for USDC (A: +5ETH-USDC; R -5ETH+USDC);
- 5 ETH bought from AMM for Arhat with USDC (A: +10ETH-USDC);
- 5 ETH sold to Ryan for DAI (R: 0ETH+USDC-DAI)
Eventually Ryan's position is not satified, i.e. -5ETH & + DAI
Thanks for pointing it out. Just a minor detour in the execution of the transactions, not a flaw in the fundamental mechanism itself.
So the exact error was in overcounting/double selling Ryan's ETH, going beyond the 5 ETH he wanted to provide. This left him oversold, with no ETH and an imbalance of assets.
The fix is removing that last unnecessary ETH sale in P's bid. Then Ryan correctly sells just 5 ETH to Arhat, gets USDC, and retains a sound position.