🏪Market Creation Guidelines
Last updated
Last updated
There really are no limits with Exotic Markets. If you can dream it, you can make a market for it. This is possible because all markets are subject to community submitted disputes, so once a market makes it through the positioning phase without a successful dispute (see Disputing a Market for more details), it's official.
Exotic Markets can be totally unique, or they can act as a companion to other markets. Instead of limiting your choices to typical asset prices or the outcome of a sporting event, you can create more specific and esoteric positions that compliment these standard offerings. Think creatively! Do you think a specific player will snag an interception in the third quarter? Do you think ETH volume on Coinbase will exceed a certain amount? As long as you provide a logical market question, reasonable positions and a legitimate data source to confirm the results, you can make a market for it!
Go to https://exoticmarkets.xyz/#/markets to create an Exotic Market.
Crypto traders have waited long enough for more choices and more excitement. After much debate and hard work, the community has pulled together to develop the following framework to ensure the fairness and reliability of custom exotic markets while keeping them fun.
All guidelines for market creation, participation, disputes and resolution can be found in detail in TIP-28.
When creating an Exotic Market, the following guidelines must be met or market creation will be reverted:
Each market must include a market question (e.g. "Will Jason Tatum score more than 30 pts in game 4 of the first round of the 2022 NBA Playoffs?"). The Market question must be mainstream, precise, written in English, and free of ambiguity. You can also add a description to the market for added clarity.
Markets cannot contain any morbid, racist, or otherwise malicious questions or they will be disputed and slashed.
No duplicate markets should be created. Multiple markets can be created for the same event, but with a different sentiment (different question and/or positions).
Markets that can be easily manipulated or rely on metrics that can be easily inflatable will be disputed and slashed.
Markets must include a market data source (URL) that is verifiable and widely accepted as reliable.
Positions available to purchase must be mutually exclusive and capture the full range of potential outcomes. The maximum number of available positions is 8.
Markets must define the length of the positioning phase (with a min. of 8 hours to position). The end of the positioning phase cannot be more than 2 years in the future and has to be before the event actually starts. A market's resolution cannot take place more than 2 years into the future.
Market type must be selected. You can create a market with fixed ticket prices, where traders pay to the same price for each position, or you can allow traders to enter the amount of sUSD they'd like to enter into the pool with an Open Bid Market.
A bid size, between 10 and 10,000 sUSD. Each bid will be subject to a total fee of 3%, with 1% going to the market creator, 1% going to the market resolver, and 1% to safebox (if the market is not cancelled). The Market Creator can cancel a market at any time if no bids have come in.
Whether or not withdrawals will be allowed during the positioning phase. Withdrawals will be subject to a 6% total fee, with 3% going to the market creator and 3% to the safebox. These fees will be included in the withdrawal transaction. Users can withdraw their position up to 8 hours before positioning ends.
Markets must include 1 to 5 tags from an available list (e.g. Sports, Crypto, etc.) which will be managed by the Oracle Council.
Market Creators must enter their initial position and amount, and they must put up a bond of 100 sUSD to create a market.
That's right, you can profit just from creating and/or resolving markets by collecting fees from bids and withdrawals!
Fixed Bid markets price each position at the same price. If the question is "Will the TVL on Optimism exceed 1 billion before July 1st, 2022 at 12:00 AM UTC", and the price per position is 20 sUSD with available positions of "Yes" and "No", both "Yes" and "No" will cost 20 sUSD.
For Open Bid Markets, traders can decide how much sUSD they want to pay for a position (between 10 and 10,000 sUSD). This amount is entered in the market pool.
Bonds are used throughout the process to ensure good behavior. By creating a market and posting a bond you are subjecting that bond to potential slashing (meaning your bond is not returned) if the market question does not adhere to the guidelines included above and in TIP-28.
It is highly recommended that users read TIP-28 before creating any markets so they can avoid the potential of having their bond slashed.
Once a Market is created and a bond is posted there is no way for Thales to stop disputes against a deployed market. This is also true for bonds posted to dispute or resolve markets (more on this below). All disputes are settled by the Oracle Council who act independently of Thales in judging whether a dispute is valid or not, therefore caution is urged when creating a market and placing a bond.
Once you've completed all parameters for market creation, the transaction to create the market will include the amount of sUSD required for the bond.
If you have any questions or want to discuss the guidelines with the community, you can visit the following Exotic Markets channels in Thales Discord:
#markets-chat
#potential-markets-to-create
