Is bidding process handled on chain?

Does rarible handle bidding process on chain?

While researching rarible system, I couldn’t find any bidding feature on smart contract or blockchain.
So I’ve thought there are three possibilites but not sure.

  1. Process bidding on chain, but I couldn’t find
  2. Process bidding 2nd layer chain.
  3. Process bdding on off chain (custom server)

Is anyone knows how it works?

Thank you.

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