Bidding & Auctions

Lux ADX implements decentralized auctions with OpenRTB compatibility and TEE-sealed bidding.

Auction Types

Type	Mechanism	Use Case
Second-price sealed	Winner pays second-highest bid	Standard display/CTV
First-price	Winner pays own bid	Programmatic guaranteed
Private	ZK-verified, bids never revealed	Privacy-sensitive

OpenRTB Integration

ADX supports OpenRTB 2.5 and 3.0 formats. Bid requests include impression specs, device info, and floor prices. Responses carry VAST 4.x ad markup for CTV.

{
  "id": "req-abc123",
  "imp": [{"id": "1", "video": {"mimes": ["video/mp4"], "w": 1920, "h": 1080}, "bidfloor": 10.00}],
  "device": {"devicetype": 3}
}

TEE Auction Flow

Bids encrypted with HPKE before submission
TEE enclave (SGX/SEV/Nitro) decrypts and evaluates
Second-price auction executed inside hardware enclave
Winner commitment and audit transcript generated
Result signed with TEE attestation

No party can see bid values before settlement.

Budget Management

Budgets tracked in the settlement layer with real-time spend monitoring. Daily and per-impression caps enforced at the node level.

Verkle trees provide O(1) proofs for frequency cap verification across millions of users. Each impression is recorded as a leaf, and proofs are verified before accepting bids for the same user-campaign pair.

VAST 4.x Support

VAST 4.0/4.1/4.2 ad tags for CTV: linear video (pre/mid/post-roll), companion ads, verification scripts (OM SDK), and interactive end cards.