Bound Market

Bet Range Bound Volatility on Crypto Markets

Project Overview

Bound Market enables users to bet on volatility movements of crypto markets for certain time durations. The platform allows users to place orders for two position types:

1. STAY_IN: Bet on price will remain within specified bounds for 24 hours
2. BREAKOUT: Bet on price will break out of specified bounds within 24 hours

The platform is built on Solana for high-speed, low-cost trading with real-time price data from Pyth Network.

Platform Architecture

Technical Architectue Understanding Video

![Bound Market Technical Architecture]

The project consists of three main components:

1. Smart Contract

Located in the /contract directory, the Solana program handles:

• User vault management for deposits and withdrawals
• Position creation with price bounds
• Price monitoring with Pyth Network
• Automatic settlement and payout calculations
• Trading pool management

View Contract Documentation

2. Backend Service

Located in the /backend directory, the Node.js microservice manages:

• Order matching for binary options trading
• Position monitoring for settlement
• BTC price feed integration
• Database synchronization with on-chain data
• Health monitoring for the platform

View Backend Documentation

3. Frontend Application

Located in the /frontend directory, the Next.js web application provides:

• Real-time BTC price charts with bound visualization
• Order book for viewing market activity
• Position management interface
• Wallet integration with Solana
• Responsive design for all devices

View Frontend Documentation

How It Works

1. User Flow:

   • User connects their Solana wallet to the platform
   • User places an order (STAY_IN or BREAKOUT) with specified amount and price range
   • Backend matches the order with a counterparty
   • Smart contract creates positions for matched orders
   • Position monitor tracks price movements
   • Positions settle automatically when conditions are met
   • Users can claim their payouts for settled positions

2. Integration:

   • Backend connects to the smart contract via Anchor framework
   • Frontend communicates with backend for order placement and data retrieval
   • All components use Supabase for persistent data storage
   • Pyth Network provides reliable BTC price feeds

3. Settlement Logic:

   • STAY_IN positions win if price stays within bounds for 24 hours
   • BREAKOUT positions win if price breaks out of bounds at any time
   • Payouts are time-weighted, meaning they vary based on when settlement occurs
   • Maximum payout is 2x the position amount (100% profit)

Development Setup

See individual component READMEs for detailed setup instructions:

• Contract Setup
• Backend Setup
• Frontend Setup

Deployment

The platform is designed for deployment across multiple environments:

• Smart Contract: Deployed on Solana DevNet
• Backend: Containerized for deployment to any cloud provider
• Frontend: Optimized for deployment on Vercel

Security

• All user funds are secured in PDAs on the Solana blockchain
• Price feed data is sourced from Pyth Network, a leading oracle solution
• Time-based calculations use Solana's on-chain clock for accuracy
• Positions can only be claimed by their original creator