Concept for decentralized binary option trading about proposals HOT 5 CLOSED

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Generally I'm +1 for the idea. A couple quick thoughts:

1. I doubt traders would be happy with the prospect of randomly choosing the winner in case of a tie. They'd expect to get their stakes back, and I imagine that's what other platforms do. I understand why this is technically challenging, but explaining that to traders may not have any effect on their opinion.

2. In the case of an oracle that publishes the price, it should perhaps be that the oracle publishes at blockHeight and then BSQ nodes evaluate the contract at blockHeight+1 in order to avoid race conditions.

from proposals.

@cbeams Thanks for the feedback!

1. I doubt traders...

Yes good point. I think it will depend on the granularity of the price data. If it is a 4 decimal price it will be highly unlikely that this ever will happen. It just makes all easier as we don't need to support a refund mode. But of course it would be possible as well but might have some negative consequences. E.g. the traders need to make 2 issuance transactions. One with full payment to him and one with split refund payout. Those cost btc fees... But maybe there is a way to work with not published transactions as well and that the issuance tx will be only broadcasted in case of a win (or slipt refund) scenario.

2. In the case of an oracle...

Good idea. Probably we will need some more buffer for avoiding issues with reorgs. Theoretically the result could be included in a block which gets later re-orged and then the alternative chain might contain another tx with another result. With 10 blocks break between price publishing and cntract result execution we avoid those problems.

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@cbeams Ah yes that is a good idea!

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No plans to work on that in the foreseeable future.

from proposals.