How to trade decision markets

In order to understand how to trade decision markets it is important to first understand what exactly it is we are trading. Let’s take a look at the structure of the product.

What are pass vs fail markets?

The pass and fail markets represent potential scenarios for the tradeable governance proposal. Take the following governance proposal as an example:

“Should Cronos mint 70 billion new $CRO tokens?”

The pass and fail market in this case represents what the price of $CRO would be should the proposal pass vs fail. This means that in any given market, traders are able to express a view like “if this proposal passes, I think the token is worth X dollars” (pass market) and “if the proposal fails the token is worth Y dollars” ( fail market).

The beautiful thing about this model is that traders make money by being accurate in their price prediction, creating the ultimate incentive for participation in the market - profit.

Placing trades

Trading on robin.markets is completely gas-less and you can place both market and limit order trades using our order book.

You first select the market you want to trade by pressing either “pass” or “fail”. Then you are free to place both market and limit orders in the order book.

Note that placing an order and getting matched in the order book means that the assets you used will be “locked” into the market until it’s either settled or reverted. The possibility of the trades being reverted make is necessary to prevent withdrawing any tokens until the market time ends.

You can see the time remaining for any given market on both the front page and the market page.

Settlement

At the end of each proposal, the market perceived by traders to have the most positive price impact will settle, meaning the DAO will implement the decision the market dictates and all balances are allowed to be taken out. The other market will be reverted, meaning all trades are rolled back and funds returned to traders. Traders will have to manually go and release assets after a market concludes, and they will be able to do so in perpetuity, but it is of course advised to do so asap. After settlement, the tokens can be bridged back to the EVM chain they came from (BSC testnet during beta).