Discover binary options on Sui — learn what prediction markets are, how positions work, and the four core on-chain objects that power DeepBook Predict.
A binary option is a financial contract that pays a fixed amount (1 DUSDC) if a condition is true at expiry, or nothing (0 DUSDC) if false. "Binary" means two outcomes — win or lose, all or nothing. DeepBook Predict brings this on-chain with sub-second settlement on Sui.
Every position is a bet on where the settlement price will land. UP bets the price will be at or above the strike. DOWN bets below. RANGE bets within a band. Positions are encoded using sentinel values for the lower and higher strike bounds.
On-chain, every position is stored as a RangeKey with lower_strike and higher_strike. Special sentinel values represent infinity: NEG_INF = 0 means negative infinity, POS_INF = 2^64-1 means positive infinity. This elegantly encodes all three position types.
DeepBook Predict is built on four shared objects that live on the Sui blockchain. Each has a distinct responsibility — understanding them is essential for building any Predict integration.
Every Predict integration uses a fixed set of contract addresses and constants. These identify the protocol objects on-chain and define the numerical encoding used for all prices and fees.
The Predict package is organized into modules, each with a specific job. Knowing which module does what is critical when building transaction calls — you need the right target path.
Every market (oracle) progresses through four states. Understanding these states tells you what operations are allowed at each phase — you can only mint on active oracles and redeem settled ones for payout.
Active oracles receive continuous price updates from Pyth Lazer (high-frequency price feeds). The oracle stores both spot (current market price) and forward (expected price at expiry), which is derived from spot plus a basis adjustment.
A complete trade goes through several steps: discover markets, select a position, compute the price, build a transaction, and submit it to the Sui network. After expiry, winning positions are redeemed for 1 DUSDC each.