Markets on Vega

Here’s a place to discuss what kinds of markets will be able to be created on Vega and how they can / should work. We love to get community input and feedback!

What are your questions on how to create a market?
What are your favourite derivatives to trade and why?
What kind of markets seem interesting, useful, needed, novel?
Which markets should exist but don’t?

I’ll seed this with ideas I’ve received recently from traders, market makers and entrepreneurs… it’s something traders love to think about… all the markets we’d create if we could.

Permissionless market creation is imminently available in our Testnet…


I was reading and wondered If I could create a product/market on Vega that references other markets within Vega? For example could I create a binary option called “FTSE 100 to close between X and Y” that references the appropriate option instruments for X and Y within Vega, or do I need tokens that represent the options and then use these as settlement somehow?

@michael, yes! We expect markets to be created where the underlying is another Vega market price.
Just be mindful not to confuse the settlement asset - which could just be a regular USDT coin - with the oracle / “price” against which Vega will make a final settlement calculation. They are completely different concepts.

So by way of example, on Vega we may have a thriving BTCUSD_DEC20 futures market and then someone builds a “options on a future” market which references the futures market. These options could mature prior to the expiry of the futures and use whatever the “mark price” for that future is (though, there are some concerns with gameability of this), or both markets could mature at the same time and the final (or even settled) futures price (BTCUSD_DEC20) becomes the oracle for the options market. On Vega the oracle is specified when the market is created and it’s up to Vega participants voting in favour of the market, or later those trading on the market to decide whether the oracle is one that makes sense / is trusted.

Here’s a link to how CME does options on futures: