GAS / GWEI contracts are cryptoderivatives designed to track Ethereum's average gas price. Each GAS / GWEI contract has an expiration date and two share tokens—one LONG share and one SHORT share. The contract is denominated in ETH, and together each set of LONG and SHORT shares is worth 1 ETH.
Veil uses Augur, a popular prediction market and forecasting protocol built on Ethereum, to represent and settle GAS / GWEI contracts. Specifically, each GAS / GWEI contract is an Augur scalar market, meaning that the payout distribution between LONG and SHORT shares is not winner-take-all like many prediction markets.
GAS / GWEI contracts expire at 5pm PT each Friday. When they expire, holders of LONG shares and holders of SHORT shares can exchange their shares for a portion of the ETH escrowed in the contract. The allocation for each type of share is based on Veil's GAS index and the bounds of the contract.
For any point in time, Veil's GAS index represents the average gas price (in Gwei) for all Ethereum transactions over the last 7 days. Each contract also has bounds—a minimum Gwei value and a maximum Gwei value—so the payout distribution depends on where the final GAS index value falls between the two bounds.
Here is an example GAS / GWEI contract. Adjust the bounds and final GAS index value and see how the payout changes.
GAS / GWEI contracts are experimental products. If you have further questions or feedback about these contracts or Veil's trading platform, don't hesitate to reach out to our team on Twitter at @veil or via email at email@example.com.