Outcome Tokens

Strike uses ERC-1155 multi-tokens to represent market outcomes. Each market has two tokens: YES and NO.

Token IDs

Token IDs are deterministic — no registry needed:

• YES: marketId * 2

• NO: marketId * 2 + 1

Minting

Outcome tokens are always minted as a fully collateralized pair:

Deposit 1 BNB → Receive 1 YES + 1 NO

This guarantees that the total collateral in the system always equals the total supply of either token. There's no fractional reserve.

Merging

At any time before resolution, you can merge a pair back into collateral:

Return 1 YES + 1 NO → Receive 1 BNB

This is useful for exiting a position without trading on the book.

Trading

Outcome tokens are what you trade on the orderbook:

• Buying YES at 0.60 = paying 0.60 BNB for 1 YES token (implies 60% probability)

• Selling YES at 0.60 = selling 1 YES token for 0.60 BNB

• Equivalently, buying NO at 0.40 (since YES + NO = 1.00)

Since tokens are ERC-1155, they're transferable and composable with other protocols.

Redemption (Post-Resolution)

Once a market resolves:

• Winning tokens redeem 1:1 for collateral (1 winning token → 1 BNB)

• Losing tokens are worthless (can be burned or ignored)

Example

You buy 10 YES tokens at 0.60 each (cost: 6 BNB). The market resolves YES.

• Your 10 YES tokens redeem for 10 BNB

• Profit: 10 - 6 = 4 BNB (before fees)

If the market resolves NO, your YES tokens are worth 0.

Cancellation

If a market is cancelled (no valid Pyth update within deadline), all token pairs can be merged back to collateral. No one loses funds.