Conditional Tokens

Settled prediction market shares are real SPL tokens built on Solana's Token-2022 program with the metadata extension. Every market creates two token mints — YES and NO — that users receive when they trade.

Why Token-2022

Token-2022 has a built-in metadata extension that stores name, symbol, URI, and arbitrary key-value pairs directly on the mint account. No CPI to Metaplex. No separate metadata PDA. Cheaper and natively supported by Phantom, Solflare, and Solana Explorer.

Feature	SPL Token + Metaplex	Token-2022 + Metadata Extension
Metadata storage	Separate PDA (Metaplex program)	On the mint itself
Extra CPI calls	Yes	No
Cost per market	~0.01 SOL (2 mints + 2 metadata)	~0.006 SOL (2 mints with extension)
Additional fields	Requires off-chain JSON	additional_metadata key-value on-chain

What Each Market Creates

MarketState PDA

• Seeds: ["market", market_id]
• Stores LMSR state, timestamps, outcome, statistics
• References yes_mint and no_mint pubkeys
• Contains feed_hash for Switchboard oracle verification

YES Token Mint

• Seeds: ["yes_mint", market_id] → PDA mint
• Mint authority: VaultState PDA (only the program can mint/burn)
• Decimals: 6 (matches USDC scale)
• Symbol: stYES

On-chain metadata:

name:       "BTCUSDT Binance YES — Settled"
symbol:     "stYES"
uri:        "https://api.settled.pro/v1/tokens/{market_id}/yes"

additional_metadata (all on-chain):
  question:     "Will BTCUSDT funding rate on Binance at 2026-03-19 16:00 UTC be positive?"
  exchange:     "binance"
  symbol:       "BTCUSDT"
  settlement:   "2026-03-19T16:00:00Z"
  market_id:    "d270b1dc-716f-4b77-8747-0410c9be91c0"
  platform:     "https://settled.pro"
  feed_hash:    "994896360e3a6bf4..."
  status:       "open"

NO Token Mint

Same structure as YES, with name: "BTCUSDT Binance NO — Settled", symbol: "stNO".

Token Lifecycle

Minting (Buy)

When a user buys YES shares:

1. User transfers USDC to the vault
2. Program computes shares via LMSR cost function
3. Program mints YES tokens to the user's Associated Token Account (ATA)
4. Mint authority is the VaultState PDA — only the program can mint

// Simplified — mint YES tokens to user's ATA
let mint_ix = spl_token_2022::instruction::mint_to(
    token_2022.key,
    yes_mint.key,
    user_yes_ata.key,
    vault_state.key,  // mint authority = vault PDA
    &[],
    shares_micro,     // 6 decimal places
)?;
invoke_signed(&mint_ix, &[...], vault_seeds)?;

Burning (Sell)

When a user sells YES shares:

1. Program burns YES tokens from the user's ATA (user signs the burn)
2. Program computes USDC proceeds via LMSR
3. Program transfers USDC from vault to user

The user is the authority over their own token account, so they sign the burn — no invoke_signed needed.

Burning (Claim)

After market resolution, holders of winning tokens can claim USDC:

1. Market must be in Resolved status
2. User burns winning-side tokens
3. Program transfers USDC payout: tokens_burned * (1 - fee)
4. No authority key involved — fully trustless

Token Images

Every YES/NO token has a branded, dynamically rendered image served from:

https://api.settled.pro/v1/tokens/{market_id}/yes/image.png
https://api.settled.pro/v1/tokens/{market_id}/no/image.png

Images include the Settled logo, coin icon, exchange name, YES/NO badge with current price, and settlement time. They update as prices change and after resolution.

Token	Background	Accent	Badge
YES	#0B0E11 (dark)	#009B88 (Settled teal)	#22c55e (green)
NO	#0B0E11	#009B88	#ef4444 (red)

All data needed to reconstruct the image is available on-chain via additional_metadata, so positions remain readable even if the image server is unavailable.

Metadata JSON

The URI in the token metadata serves standard JSON that wallets and indexers read:

{
  "name": "BTCUSDT Binance YES — Settled",
  "symbol": "stYES",
  "description": "Will BTCUSDT funding rate on Binance at 2026-03-19 16:00 UTC be positive?",
  "image": "https://api.settled.pro/v1/tokens/d270b1dc.../yes/image.png",
  "external_url": "https://settled.pro/markets/binance-btcusdt",
  "attributes": [
    { "trait_type": "Platform", "value": "Settled" },
    { "trait_type": "Exchange", "value": "Binance" },
    { "trait_type": "Symbol", "value": "BTCUSDT" },
    { "trait_type": "Side", "value": "YES" },
    { "trait_type": "Settlement", "value": "2026-03-19T16:00:00Z" },
    { "trait_type": "Status", "value": "Open" },
    { "trait_type": "Oracle", "value": "Switchboard" }
  ]
}

After resolution, the metadata updates to include outcome, actual rate, and resolution transaction signature.

What This Enables

• Wallet-native — positions visible in Phantom, Solflare, any Solana wallet
• Explorer-readable — question, exchange, settlement time, outcome all on-chain
• Composable — DEXes, aggregators, and portfolio trackers understand the tokens
• Secondary markets — YES/NO tokens tradeable on Jupiter or Raydium
• Audit-friendly — fully on-chain prediction market with oracle-verified resolution

Costs

Item	Cost per market
MarketState PDA	0.003 SOL
YES Mint + metadata	0.004 SOL
NO Mint + metadata	0.004 SOL
Total	0.011 SOL

User pays rent on first trade (lazy creation). Rent is reclaimable when the market is closed.