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Augur: Scalar Markets

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Scalar Markets on the Augur project - "How I learned to stop thinking about num ticks and love the payout numerators"

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Augur: Scalar Markets

  1. 1. Scalar Markets How I learned to stop thinking about num ticks and love the payout numerators
  2. 2. Markets Binary: Categorical: Scalar: No or Yes. Payout goes entirely to one outcome. Multiple labeled outcomes. Payout goes entirely to one outcome. Short or Long. Payout is correlated with the final value: Long paid more when higher. Short paid more when lower.
  3. 3. Num Ticks ● Range = Max Display Price - Min Display Price ● Tick Size = Smallest unit of price movement ● Num Ticks = Range / Tick Size ● In contracts this (and everything else) is in attoeth (wei) ● Complete Sets cost num ticks attoeth ● The max price in trading for a market is num ticks attoeth ● The sum of payout numerators must equal num ticks
  4. 4. Trading Order Fill Result Buy 500 shares at 2500 (use tokens) Sell 500 shares at 2500 (use tokens) -1250000 attoeth +500 long shares -3750000 attoeth +500 short shares Buy 500 shares at 2500 (use shares) Sell 500 shares at 2500 (use tokens) +3750000 attoeth -500 short shares -3750000 attoeth +500 short shares Buy 500 shares at 2500 (use tokens) Sell 500 shares at 2500 (use shares) -1250000 attoeth +500 long shares +1250000 attoeth -500 long shares Buy 500 shares at 2500 (use shares) Sell 500 shares at 2500 (use shares) +3750000 attoeth - fees -500 short shares +1250000 attoeth - fees -500 long shares Num Ticks = 10000 Shares = Outcome 1 Shares
  5. 5. Reporting Payouts Market Resolution Payout Price of ETH Range: 10 - 3000 Tick Size: 1 2500 [500, 2490] Long Blockchain Corp. Range: 0 - 20 Tick Size: .01 0.5 [1950, 50] Addition to National Debt Range: 500 billion - 2 trillion Tick Size: 1 billion 1 trillion [1000, 500]
  6. 6. Questions

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