Lighter code repository now supports binary options or promotes prediction markets

According to X user @UngusTrade's post on September 21, a commit named "Binary options support" recently appeared in Lighter's prover code repository, which describes ZK circuits that support Lighter. The code shows that this implementation is for standard binary outcome contracts, with a settlement cap for each market, typically set at 100 for prediction markets, where share prices trade between 0 and the cap, settling at either 0 or the cap. The contracts are fully collateralized in USDC, with no leverage and no liquidation.

It is noteworthy that the circuit supports continuous markets, allowing for settlement at any value within a range, thus enabling contracts based on measurements, rather than just yes or no events. Additionally, Lighter may allow whitelisted operators to create, manage, and settle markets, similar to the deployment model of HIP-3. Currently, Lighter has not commented on this.