Auction Dynasty year 2 question

Hi Im joining an auction dynasty league. Am I overthinking or is year two everyone only bidding on the same 5 or 6 rookies and available FA?

I don’t understand how having an auction to distribute rookies makes any sense in a dynasty.

View it more as an auction draft in a dynasty in year 2. Most players are already in a team. So the draft is mostly Fa and rookies.

Right, so the teams that finished last that should be getting the best rookies now have to compete with the best teams for said rookies?