Speed Markets

Typical Positional and Ranged Markets close for positioning when the maturity date/time is less than 24 hours away due to protocol risk management, but some traders couldn’t wait on the sidelines for that long.  To satisfy the community Thales developed Speed Markets to work with nearly instantaneous pricing data, made possible with the use of Pyth Benchmarks.

Traders choose an asset, direction (UP or DOWN) and strike time for that asset based on the trader’s predicted price movement from the asset’s current price.  Once a trader submits a transaction to purchase a position, a snapshot of the asset’s current price is taken to define the strike price. Because the strike price is always taken from the current price of an asset at the time of a buy, all positions will have 50:50 implied probabilities. This means that a winning trader will see a 2x payout (minus the quoted LP fee and a fixed 2% Safebox fee) on a single winning position.