Project Overview
Blink Market is a fast, capital-efficient binary prediction market protocol built on the Sui blockchain. It combines off-chain Request for Quote (RFQ)
pricing from a Professional Market Maker (PMM) with secure, atomic on-chain settlement.
Users trade on binary outcomes such as YES or NO. Each successful trade creates an on-chain position that can be redeemed for its full notional value if the
selected outcome wins.
Core Features
- Binary YES/NO prediction markets
- Instant quotes through the off-chain PMM server
- Cryptographically signed, short-lived RFQ quotes
- Atomic trade settlement on Sui
- Fully collateralized positions
- On-chain position ownership and redemption
- PMM collateral deposit and withdrawal
- Protocol fee collection through an on-chain treasury
- Admin-controlled market creation and resolution
- On-chain events for indexing and transparency
Technical Architecture
Blink Market uses a hybrid architecture:
- A user requests a quote from the Go-based PMM server.
- The PMM pricing engine calculates a price in basis points.
- The server assigns a sequence number and expiration time.
- The quote is encoded and signed with an Ed25519 key.
- The user submits the quote and payment to the Sui smart contract.
- The contract verifies the signature, expiration, PMM identity, and sequence number.
- User and PMM collateral are combined in the market pool.
- A Sui Position object is minted to the user.
- After resolution, winning positions can be redeemed on-chain.
The smart contracts are written in Move 2024 and divided into modules for market management, RFQ execution, collateral accounting, fee calculation,
administration, and events. The PMM server is written in Go and provides quote generation, signing, sequence persistence, rate limiting, and quote archiving
through the /v1/quote API.
Motivation
Traditional prediction-market AMMs often face poor capital efficiency, slippage, fragmented liquidity, and difficult market bootstrapping. These limitations
are especially visible in short-lived or specialized markets where liquidity providers may not want to lock capital in a pool.
Blink Market replaces the AMM pricing curve with professional off-chain quoting. This allows market makers to use external information and risk models while
keeping custody, collateral, settlement, and payouts verifiable on-chain.
Blockchain Solutions:
- Sui shared objects provide transparent market pools and clearinghouse state.
- Move capability-based authorization protects market administration.
- Ed25519 signatures make PMM quotes independently verifiable.
- Expiration timestamps prevent stale quotes from being executed.
- Strictly increasing sequence numbers prevent quote replay.
- PMM public keys are cryptographically bound to their Sui addresses.
- Atomic settlement ensures collateral movement and position creation succeed or fail together.
- On-chain position objects provide users with verifiable ownership of their trades.
- Smart-contract-enforced collateralization ensures each winning position can be redeemed for its stated notional value.
Unique Features
- Off-chain RFQ, on-chain settlement: Fast and flexible pricing without sacrificing verifiable execution.
- Professional market-maker model: PMMs can price markets using dedicated risk engines instead of fixed AMM curves.
- Capital-efficient liquidity: Each trade only requires the collateral needed to cover its specific payout.
- Object-based positions: Every successful trade creates a transferable, wallet-owned Sui object.
- Cryptographically bound quotes: Quotes are tied to a market, side, size, price, PMM, sequence number, and expiration time.
- Cross-repository interoperability: The Go server reproduces the contract’s exact 97-byte signed-message format, verified through golden test vectors.
- Fault-tolerant quote archiving: Signed quotes are recorded for auditability without blocking quote delivery if archival fails.
- Pluggable pricing architecture: The current PMM server uses configurable reference pricing while exposing an interface for future market-driven pricing
engines.