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.