> ## Documentation Index
> Fetch the complete documentation index at: https://injectivelabs-feat-fix-archived-repos.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Auction

The `auction` module is heart of the `buy-back-and-burn` on chain mechanism, where 60% of the weekly trading fees are collected and auctioned off to the highest INJ bidder where the submitted INJ of the highest bidder are burned in the process.

## MsgBid

This message is used to submit a bid on the [auction](https://hub.injective.network/auction/) held weekly to allow members to use INJ to bid for the basket of trading fees (60%) collected by Injective that week.

```ts theme={null}
import { ChainId } from '@injectivelabs/ts-types'
import { toChainFormat } from '@injectivelabs/utils'
import { MsgBid } from '@injectivelabs/sdk-ts/core/modules'
import { MsgBroadcasterWithPk } from '@injectivelabs/sdk-ts/core/tx'
import { getNetworkEndpoints, Network } from '@injectivelabs/networks'
import { ChainGrpcAuctionApi } from '@injectivelabs/sdk-ts/client/chain'

const endpointsForNetwork = getNetworkEndpoints(Network.Mainnet)
const auctionApi = new ChainGrpcAuctionApi(endpointsForNetwork.grpc)

const injectiveAddress = 'inj1...'
/* format amount for bid, note that bid amount has to be higher than the current highest bid */
const amount = {
  denom: 'inj',
  amount: toChainFormat(1).toFixed(),
}

const latestAuctionModuleState = await auctionApi.fetchModuleState()
const latestRound = latestAuctionModuleState.auctionRound

/* create message in proto format */
const msg = MsgBid.fromJSON({
  amount,
  injectiveAddress,
  round: latestRound,
})

const privateKey = '0x...'

/* broadcast transaction */
const txHash = await new MsgBroadcasterWithPk({
  network: Network.Mainnet,
  privateKey,
}).broadcast({
  msgs: msg,
})

console.log(txHash)
```

## Burn Auction Deposit via MsgExternalTransfer

If you would like to grow the burn auction's pool size, you can directly send funds to the Auction subaccount.

Notes:

* You will need to send funds to the pool's subaccount `0x1111111111111111111111111111111111111111111111111111111111111111`.
* Be aware that any funds you send will be reflected in the next auction, not the current one.
* You cannot transfer from your default subaccountId since that balance is now associated with your Injective address in the bank module. Therefore, in order for `MsgExternalTransfer` to work, you will need to transfer from a non-default subaccountId.

How to find the subaccountId that you will be transferring from:

* you can query your existing subaccountIds via the [account portfolio api](../query-indexer/portfolio/).

How to use funds that are currently associated with your Injective Address in bank module:

* If you have existing non-default subaccounts, you'll want to do a[ MsgDeposit ](/developers-native/examples/exchange#msgdeposit)to one of your existing non-default subaccountIds and use that subaccountId as the `srcSubaccountId` below.
* If you don't have existing non-default subaccounts, you can do a [MsgDeposit](/developers-native/examples/exchange#msgdeposit) to a new default subaccountId, which would be done via importing `getSubaccountId` from `sdk-ts` and setting the `subaccountId` field in [MsgDeposit](/developers-native/examples/exchange#msgdeposit) to `getSubaccountId(injectiveAddress, 1)`.

For more info, check out the [burn auction pool docs](https://docs.injective.network/developers/modules/injective/auction).

```ts theme={null}
import { Network } from '@injectivelabs/networks'
import { toChainFormat } from '@injectivelabs/utils'
import { MsgBroadcasterWithPk } from '@injectivelabs/sdk-ts/core/tx'
import { MsgExternalTransfer } from '@injectivelabs/sdk-ts/core/modules'

const injectiveAddress = 'inj1...'
const srcSubaccountId = '0x...'
const POOL_SUBACCOUNT_ID = `0x1111111111111111111111111111111111111111111111111111111111111111`

// USDT Peggy token details
const USDT_DENOM = 'peggy0xdAC17F958D2ee523a2206206994597C13D831ec7'
const USDT_DECIMALS = 6

/* format amount to add to the burn auction pool */
const amount = {
  denom: USDT_DENOM,
  amount: toChainFormat(1, USDT_DECIMALS).toFixed(),
}

/* create message in proto format */
const msg = MsgExternalTransfer.fromJSON({
  amount,
  srcSubaccountId,
  injectiveAddress,
  dstSubaccountId: POOL_SUBACCOUNT_ID,
})

const privateKey = '0x...'

/* broadcast transaction */
const txHash = await new MsgBroadcasterWithPk({
  network: Network.Mainnet,
  privateKey,
}).broadcast({
  msgs: msg,
})

console.log(txHash)
```