NFT

Bro, Kakao is awesome! Blur has updated its bidding mechanism to filter out point-farming bots.

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Bro, Kakao is awesome! Blur has updated its bidding mechanism to filter out point-farming bots.

Brother Mark Huang of Mahji revealed on Tuesday at 9 am that the NFT market Blur's airdrop point system encountered issues due to many bots providing false liquidity. Surprisingly, within just two days, Blur swiftly took action and will filter out excessive bots in the market and change the bidding mechanism in the future.

Huang Licheng Criticizes Blur for Excessive Robot Issues

According to previous reports, Huang Licheng claimed that Blur's airdrop point algorithm diluted rewards for "true liquidity providers" and is creating a negative feedback mechanism. Once liquidity providers leave, the liquidity on Blur will also drop to zero.

This phenomenon mainly arises because many robots are placing a large number of bids and canceling orders before they are executed, allowing them to accumulate airdrop points without taking on risks, thus creating unfair conditions for true liquidity providers.

In response, Blur's founder, Pacman, also replied to Huang Licheng at the time, stating that they are developing an automated detection solution, which is expected to be launched this week. The relevant mechanism was officially announced today.

Blur Changes Bidding Mechanism to Address Huang Licheng's Concerns

Blur announced on its official Twitter today that there will be two major changes this week:

  1. Bidders must cancel their current bids before accepting lower bids, with this change taking effect on 5/12.
  2. The first phase of the filtering mechanism to identify fake bidders bid spoofers will be launched later this week.

Blur explained that the current bidding function allows sellers to skip their own bids, which prevents self-trading but also makes it difficult for other traders to determine the true highest bid amount.

To address this issue, the bidding function will no longer skip the seller's own bid, and bidders must cancel their bids before selling at a lower price. Blur believes this will provide clearer market signals, allowing other traders to know the exact highest bid.

For example, if the bid book for a certain NFT project currently looks like this and the seller wants to sell two NFTs:

  • Buyer A bids 1 ETH
  • Seller's own bid 0.9 ETH
  • Buyer B bids 1 ETH

After the new mechanism is implemented, the seller needs to cancel their 0.9 ETH bid before selling two NFTs; otherwise, they can only sell one to Buyer A.

Additionally, the filtering mechanism for fake bidders will be launched this week, and points accumulated by accounts engaged in such behavior in the past will be retroactively deducted, which will help address the issues raised by Huang Licheng. Furthermore, the issue of fake lenders will also be addressed, and these offenders will face consequences in future filtering mechanisms.

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