The synthetixDAO is looking to provide seed funding for a team to build a binary options platform that utilises the Synthetix protocol!
In June we launched binary options, supporting over 25 different assets. The binary options markets were housed within Synthetix.Exchange, and the initial take-up was excellent and exceeded expectations.
Since then, the core contributors have been busy working on delivering the rest of the 2020 product roadmap, and so the decision has been made to find a motivated team to take it to the next level.
The project will require a team to build a comprehensive interface covering all aspects of the binary options trading functionality on Synthetix. This includes the market creation process and bidding process in the Bidding Phase, the buying and selling of binary option ERC-20 tokens during the Trading Phase, and exercising options in the Maturity Phase. In addition there have been discussions in the community for launching an optionsDAO to allow for more exotic markets to be created that conform to the binary options market resolution specifications.
Synthetix.Exchange currently has no interface for the Trading Phase, so building this is one of the key outcomes of this project. We expect projects to integrate an existing orderbook protocol, e.g. 0x. But, more importantly, this project will be about having an external team operating binary options on the Synthetix protocol, to continue the growth of protocols consuming Synthetix to support a diverse range of platforms and interfaces.
The synthetixDAO will provide seed funding for building this platform, with a few conditions: all code produced must be open-source and the project must become self-funding over time.
Our expectation is the grant will act as seed funding to allow the team to get to the monetisation phase of the project. This phase could involve a token, but that is ultimately up to the community.
The project may also take part in our volume incentive program, whereby platforms are rewarded with SNX from the synthetixDAO for driving trading volume through Synthetix.
There is currently no mechanism to capture fees during the binary options Trading Phase. This was intentional, to allow projects building a binary options exchanges to capture value in these markets.
This will be the first such initiative, so there will certainly be some flexibility around the details. Any teams interested in taking on this project can reach out to the Synthetix core contributors at firstname.lastname@example.org, and we can start the conversation.