Trading & Liquidity Management

How to trade shares on XIONMarkets.

Once a market is listed, it is initialized with an initial price of 'Yes' and 'No', and users can trade (predict) its outcomes using USDC by either buying into or selling its shares.

Buying and Selling Shares

Every buy into an outcome increases its value while dropping the value of the other.

Every market has two phases, thus:

Trading phase: At this phase in the market, traders can buy or sell shares associated with it. Let's consider Alice, a trader who wants to buy 'Yes' shares for a market, 'Will Donald Trump win the US Presidential elections in 2024?'. Once she buys it with USDC, say 10 USDC, she receives 'Yes' shares worth the value purchased (let's assume it's valued at $0.2 at her entry point). These shares can be sold in exchange for USDC or held until the resolution phase (this also applies to the 'No' shares).
Resolution phase: Once the resolution phase commences, trading is closed and only market makers can supply or withdraw liquidity. On the contrary, traders can claim rewards for their won bets (supposing the market resolves to their bet). Let's reconsider Alice's 'Yes' position valued at $0.2 at entry (meaning 50 shares). If the market resolves to 'Yes', her shares would eventually be valued at 50 × $1 ~ $50 (50 USDC). This would be her claimable value upon market resolution (x5 profit!). This means if the market resolved to 'Yes', its price will be $1 and 'No' will be $0 and vice versa.

All traders who placed bets on a contrary outcome to the market's result lose all their betted amount.

There is a 2% fee on trades (1% liquidity provider rewards and 1% platform commission).

Adding and Removing Liquidity

Users can serve as liquidity providers on XIONMarkets to earn relatively passive rewards from trading fees and rises in liquidity volume.

As users deposit USDC into any market for liquidity, they receive equivalent shares which can be withdrawn in exchange for USDC in the future + accrued trading fees (1% per executed trade).

The minimum leftover amount in any market is 10 USDC (liquidity providers cannot empty market pools). Markets created also must be initialized with at least 10 USDC.

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Last updated 2 months ago

Buying and Selling Shares

Every buy into an outcome increases its value while dropping the value of the other.

Every market has two phases, thus:

Trading phase: At this phase in the market, traders can buy or sell shares associated with it. Let's consider Alice, a trader who wants to buy 'Yes' shares for a market, 'Will Donald Trump win the US Presidential elections in 2024?'. Once she buys it with USDC, say 10 USDC, she receives 'Yes' shares worth the value purchased (let's assume it's valued at $0.2 at her entry point). These shares can be sold in exchange for USDC or held until the resolution phase (this also applies to the 'No' shares).

Resolution phase: Once the resolution phase commences, trading is closed and only market makers can supply or withdraw liquidity. On the contrary, traders can claim rewards for their won bets (supposing the market resolves to their bet). Let's reconsider Alice's 'Yes' position valued at $0.2 at entry (meaning 50 shares). If the market resolves to 'Yes', her shares would eventually be valued at 50 × $1 ~ $50 (50 USDC). This would be her claimable value upon market resolution (x5 profit!). This means if the market resolved to 'Yes', its price will be $1 and 'No' will be $0 and vice versa.

All traders who placed bets on a contrary outcome to the market's result lose all their betted amount.

There is a 2% fee on trades (1% liquidity provider rewards and 1% platform commission).

Adding and Removing Liquidity

Users can serve as liquidity providers on XIONMarkets to earn relatively passive rewards from trading fees and rises in liquidity volume.

As users deposit USDC into any market for liquidity, they receive equivalent shares which can be withdrawn in exchange for USDC in the future + accrued trading fees (1% per executed trade).

The minimum leftover amount in any market is 10 USDC (liquidity providers cannot empty market pools). Markets created also must be initialized with at least 10 USDC.