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Lighter Launches BTC and ETH Binary Options on Core Network

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LIGHTERUSD$3.12 0.78%

Decentralized trading protocol Lighter (COINBASE:LIGHTERUSD) has introduced Bitcoin and Ethereum binary options on the Core network. The platform utilizes Ethereum zero-knowledge proofs to record proof of trade execution order, timing, and price on-chain, seeking to ensure fair order matching for users.

The expansion into binary contracts marks the first phase of Lighter's planned derivatives rollout this quarter. Platform chief executive Vladimir Novakovski stated that the project plans to introduce on-chain European options that share balance sheet infrastructure with its existing perpetual markets. By offering spot, options, and perpetual products in one place, traders can execute complex multi-leg strategies such as basis trading and delta hedging.

Operationally, Lighter claims trade execution speeds in the tens of milliseconds, significantly faster than competing venues that take upwards of 500 milliseconds. The U.S.-based entity is currently seeking a license from the Commodity Futures Trading Commission. If regulatory approval is granted, Lighter would become the first on-chain trading platform to obtain CFTC licensing.

Key points

  • Lighter introduced Bitcoin and Ethereum binary options trading on the Core network.
  • The platform uses Ethereum zero-knowledge proofs to verify trade execution speed and order priority on-chain.
  • Future plans include launching European options that share a balance sheet with existing perpetual markets.
  • Lighter is seeking a license from the CFTC, which would make it the first licensed on-chain trading venue.

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Questions and answers

What new products did Lighter launch on Core?

Lighter launched Bitcoin (BTC) and Ethereum (ETH) binary options on the Core network as part of its derivatives expansion.

How does Lighter handle trade verification?

Lighter relies on Ethereum zero-knowledge proofs to publish verifiable data on order-matching time, price, and priority on-chain.

Is Lighter seeking regulatory approval in the US?

Yes, the U.S.-based company is seeking a license from the Commodity Futures Trading Commission (CFTC) to become the first licensed on-chain trading venue.