Suspected Lighter Prediction Market Mechanism Exposed: Plans to Adopt HIP-3-Style Whitelist Operating Model
A commit titled “Binary options support” recently appeared in the codebase for the decentralized order book exchange platform Lighter, indicating that its ZK Circuits may have begun supporting binary outcome markets (prediction markets). Based on the code, each market features a settlement cap, with share prices trading between 0 and the cap; upon settlement, shares ultimately resolve to zero or reach the cap. Contracts are fully collateralized with USDC, meaning they involve no leverage or liquidation.
Analysis suggests that Lighter may introduce a "market operator" model, which would allow whitelisted operators to create, manage, and handle market settlement, similar to the HIP-3 deployment model.
