MVP — Binary Options User Guide

8 min readOct 27, 2021


We are thrilled to launch Binary Option in our MVP v1.0 today. This was one of the major features of the Platform that will be going out live today. The MVP has been deployed on Binance Smart Chain Testnet today.

It can be accessed on the link:

Binary options are a type of options contract where the parties involved in the transaction are assigned one of two outcomes based on whether the option expiry price. Binary options depend on the outcome of a “Yes or No” proposition, hence the name “binary”. In binary options, users can either predict “Long” or “Short” and winners will receive a payout (minus fees 1%) based on the price of the asset at expiry and the direction they have chosen. As the name binary implies, its either win or lose, so the winners share the profit among them and losers gets nothing.

We have deployed our first iteration of our MVP which is binary options. This post will explain how this new feature works and how to get involved.

How Binary Options work?

Let’s say we have binary options contract with the below details:

Asset: ETH

Expiry Date: 31st December 2021

Strike Price: 7000 USD

The result of the above option will be either true or false. True is represented by “long” and false is represented by “short” .

Let’s say, if there are “N” number of users who stake a total amount of 50000 USDx and out of which 30000 USDX are in the long side and 20000 USDx are on the short side. If the price of the Ethereum expires at 6000 $, then the people who predict on short side will be the winners and all these people will be sharing the 30000 USDx that was stake on the opposite side.

Features of MVP

Before starting to explain about the features of the MVP, we have to remind the users that this our first iteration and we will be constantly improving / adding new features both in terms of capabilities and UI / UX flow. So, Let’s get started, head to and login to your metamask wallet and make sure that you are connected to Binance smart chain testnet. If you don’t have binance smart chain configured in your wallet, no worries!! We are here for you. Please use the below link which has steps on how to do it.

In our MVP, basically there are 2 phases in the binary options. They are

  1. Bidding Phase
  2. Expiry Phase

Bidding Phase

In this Phase, you can choose an option contract and you can place a long or short. The long and short bids are determined by each user and their corresponding sentiment for the market. You can make as many bids as you want on both side and in this iteration, you cannot withdraw your bid once you have made it. Once you have made a bid on a contract, the transaction will appear in the table below the bidding amount along with the details of transaction, amount bid and which direction the bid was done. We have decided to keep the bidding phase until T-3 days before expiry. We will be fine tuning this parameter in subsequent versions.

We will explain the flow of bidding through the below screenshots:


Binary options Main Page

This will be the landing page of the users. Users will see a page like this. Make sure you are on Binance Smart Chain Testnet Network on your metamask wallet.

If you do not have Binance Smart Chain Testnet network in our wallet, you can go to and add the network and connect metamask using button in top right corner. Once you switch to correct network you should be able to see the home page as above.

Get Testnet BNB and USDx for Bidding

You can get the testnet BNB free from BNB testnet faucet by putting your wallet address.

USDx is the stablecoin for Derived platform that will be available on mainnet. For testing you can claim testnet USDx by clicking on the button in the top right menu.

Click on Get USDX button

Metamask will ask you to approve transaction and once it is confirmed you should receive the USDx in your metmask. The contract address for USDx is 0x39E6E5638b2aA89198A2789A2eEeC1C6Fa993FA6

Predicting the Price of the asset using Long or Short Position

When a user clicks on a particular tile, it will take inside another page, where they can choose either long/short.

On the page you will find Strike price and Expiry date. So, we have to predict whether on that day the price of Polkadot will be higher or lower than the strike price. In this example: The Strike price is $50 and expiry date is Nov 7, 2021. So, if we are bullish on the asset price and confident that will be above $50 (exact price does not matter as long as it is above $50) then we will go long on the asset by entering the amount of USDx in the box. Alternatively, the user can be bearish and go short on the Asset.

Once Bid is entered, click on Long button. Once that is done, you will be asked to provide approval for transferring USDx token from your wallet to smart contract. Please make sure that the number of tokens you have bid is the one that comes in while providing approval and ensure you have sufficient USDx tokens in your metamask wallet

Once approval is provided, another popup will come to ask for spending gas for executing the long option call. Once you have provided confirm button, please wait for a short while so that transaction is confirmed, once the transaction is confirmed you can see it on the table as shown below.

Please note that bidding on any binary option will be allowed only within the bidding phase. Each binary option (though using the same underlying asset) can have different bidding phases and expiry.

In the table shown, the user can clock on the link, to take them to the bscscan website which will show the transaction details.

Long / Short Percentage

The long / short percentage will be calculated on how many longs / shorts were entered for a particular options contract. In this case, we are the only one who longed in this, so the contract tile is tilted 100% towards long side (Trust us, nobody is that bullish!!). This also allows an idea about the market sentiment on the asset in a glance.

Expiry Phase

Once the contract is expired, the contract will be moved to expired tab on the left side of the main dashboard. Users can click on the expired contracts. If the user has bid on that expired contract and he has the correct prediction, they will be able to see the claim button and users who make incorrect prediction will not see “claim” button and they will just see message “Bidding has been ended”. In this iteration of our product, we are not setting any deadline for the users to exercise their pay-out.

Once a contract is expired, it will be shown on the left side of the main screen under expired text as shown below

Claiming the payout

Once the user clicks on the contract, he can see the claim button if he is the winner. Alternatively, the user can go to the BSCscan and check out the winner using the smart contract address of the option.

Once you visit the BSCscan, you can see who is the winner and what is the expiry price and what is the strike price. Our strike price was 50. Unfortunately, the expiry price was 41, so the people who bid short were winners. You can scroll through to see the list of winner wallets. In the UI side, “claim” button will come to user who did short.

Once the user clicks on the payout button, a popup will appear and once the user clicks submit the claim transaction will be executed and the amount will be transferred to the user wallet. Please ensure to claim all the allocated rewards that you are entitled to.

Click on the link besides claim transaction to view the payout amount.

Creating a new market

In this iteration, users don’t have the capability to create their own binary options. The Binary Options are created by the system and user can only go Long or Short on the Options.

List of Assets

Currently, our list of supported assets in this iteration are as below:


Expect to see support for a greater number of assets in the subsequent iterations.


Derived is the Multi-Chain Synthetics Trading Platform that is leveraging the interoperability features of Polkadot to make the platform available across Blockchains. The Derived platform allows leveraged minting (up to 3x) to its platform users. It will also be the first platform that would allow its user unique features like, the ability to create Hybrid Tokens and access to features like Binary Options, Multiple native currency support, 0% Slippage, and Unlimited liquidity among many others.

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