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.
By 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.
SIP link will be added here once merged to main repo
We propose two models for implementing this:
Model 1 - Direct Percentage Growth
This 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):
Select the 2 competing assets (Select from available list of assets i.e. $BTC, $ETH or $YFI etc)
Set ‘Start’ date = the “Bidding Date End”
Set ‘Maturity’ date
On ‘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.
*In the future this could be enhanced to track growth against $BTC or $ETH instead of only USD.
Model 2 - Weighted coin values
This model compares factored values of coins at the maturity date.
The market creator selects two coins and the multiplier for each coin. There are no other changes to the current mechanism (bidding date, maturity date).
Default 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.
A 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.
For both cases UI should be updated to show the both coins on the chart in the BO detailed view.