Protocol State

The state object that defines a market inside WINFLOW Protocol.

Everything an interface shows about a market is a rendering of one underlying state object. If you can read the state, you do not need to trust the rendering.

M = (
  MarketID,
  OutcomeSet,
  Collateral,
  Price,
  OpenInterest,
  ResolutionState
)

One market, six fields. Every trade, deposit or resolution is a change to one or more of these fields.

MarketIDunique market identifier

OutcomeSet{ YES, NO } or a multi-outcome set

Collateralasset backing the market

Pricecurrent price per outcome, in [0,1]

OpenInteresttotal collateral locked in open positions

ResolutionStateopen / pending / challenged / resolved

Market lifecycle

Created→

Open→

Closed→

Pending Resolution→

Resolved→

Settled

Trading is only permitted in the Open state. Once closed, prices stop; once resolved, payouts are fixed; once settled, the market is terminal and OpenInterest returns to zero.