Up to now, Binary market Creators and Bidders had to rely on the strike price in sUSD to create their market or place their bids.\nBy allowing markets to be created with two coins, betting one against the other, we increase the number of options for creators, and make markets more attractive to a wider range of bidders.
\nAllow for a new type of Binary Option to be created where the performance of two crypto assets are tracked over a period of time. The winning Bet is the asset that performed best.
\nBetting on a specific price outcome could stop people participating who are overall, more risk averse. However the general performance between two crypto assets is more of a personal belief in their (bags) project and related fundamentals and “pumpanomics” and could get a lot more people to participate.\nAnd sometimes people just don’t want to bet on a strike price but rather that one coin would outperform another.\nE.g. We could bet that SNX will outperform LINK on 01.01.2021.
\nThe sip would allow users to bet that one coin/token will outperform the other at a certain date without thinking about strike prices.
\nThe sip would allow users to bet that one coin will outperform the other at a certain date without thinking about strike prices.
\nAs betting only on a strike price has its limitation, because the whole crypto market is still driven by BTC and ETH marketcaps, it would be useful to let bidders bet on how one coin will perform against another.\nWith this someone can simultaneously long one coin while shorting the other.\nSome popular choices were already thrown in discord, e.g. Will YFI outperform BTC 1 to 1? Of course YFI would have to be added as an BO option first. New assets for Binary Options were proposed in a SIP by @PSYBULL
\nWe are proposing 2 models here, which either one or both could be implemented with this specific “Performance” based Binary Option.
\nThis model will track the ‘direct’ percentage growth of two competing crypto assets over a period of time. At the end of the period the asset with the largest % growth in USD* value will be the “winner”. The mechanism will be as follows (within the current BO framework):\nSelect the 2 competing assets (Select from available list of assets i.e. $BTC, $ETH or $YFI etc)\nSet ‘Start’ date = the “Bidding Date End”\nSet ‘Maturity’ date
\nOn ‘maturity’ the % growth in USD will be calculated for each asset and compared. If the ‘start’ date price is available to be retrieved at this point, then there is no need to capture and store it on ‘start’ date.\n*In the future this could be enhanced to track growth against $BTC or $ETH instead of only USD.
\nThis model compares factored values of coins at the maturity date.\nThe market creator selects two coins and the multiplier for each coin. There are no other changes to the current mechanism (bidding date, maturity date).\nDefault multiplier is one, e.g. SNX>LINK@01.01.2021. -> a single SNX coin will be worth more than a single LINK coin at the maturity date.\nA case with multiplier set could be: 30xSNX>ETH@01.01.2021. -> SNX coin value multiplied by 30 will be worth more than 1 EHT at the maturity date.
\nFor both cases UI should be updated to show the both coins on the chart in the BO detailed view.
\nModel 1
\nModel 2
\nCopyright and related rights waived via CC0.
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