iGain Protocol
  • iGain Protocol
  • Introduction
    • Basic Concepts of Options
    • A Decentralized Approach
  • The Core Protocol
    • Long and Short Tokens
    • Built-in DEX
      • Liquidity Provider
      • Advanced: Customized Proportion
    • Buy/Sell Options
    • Redemption
  • System Properties
    • Protocol Fee & Dynamic Trading Fee
  • iGain Universe
    • Impermanent Gain
      • Background: AMM & IL
      • Price Settlement
      • Hedge with Impermanent Gain
      • Gain with iGain
    • Interest Rate Synth
      • Introduction
      • Price Settlement
      • Fixed APY Borrowing/Lending
        • Examples
      • All-in-one Proxy
      • Underlying Token
  • Contracts
  • FAQ
Powered by GitBook
On this page

Was this helpful?

  1. The Core Protocol

Long and Short Tokens

PreviousA Decentralized ApproachNextBuilt-in DEX

Last updated 4 years ago

Was this helpful?

iGain is a prediction-market-like system with a built-in secondary market. While 1 DAI is deposited into the system, 1 Long token and 1 Short token will be minted. Long token represents the "Call Option" of an underlying asset. The price of Long token is always between $0 to $1 depending on the degree of the targeted asset's price change; Short token is its counterpart, "Put Option," which worths “$1 - Long token.”

There is a built-in secondary market for Long/Short tokens to trade. Long/Short tokens holders may redeem DAI back at settled prices after a period ends.

There are three roles involved in the iGain protocol: Liquidity Provider, Long Token Buyer, and Short Token Buyer.