Pelagos — Structured products on Sui, settled on DeepBook Predict

Pelagos turns prediction-market outcomes into clean, tradeable structured products — a live BTC options chain, a volatility desk, diversified event baskets, DeepBook range-strip strategies, and principal-protected notes — all priced off real on-chain liquidity and minted, wallet-signed, on Sui testnet.

Track: DeepBook Predict (DeepSurge) · Network: Sui testnet (chain 4c78adac). Status: live end-to-end — real wallet-signed mints, real DeepBook Predict settlement, real market-maker pricing. No invented numbers anywhere in the pricing path.

▶ Live demo: https://pelagos-sui.vercel.app — frontend on Vercel, non-custodial backend on Akash. Connect a Sui-testnet wallet, hit "Test funds" for dUSDC + mUSDC, and trade.

Two interfaces, one engine

A global Basic / Advanced toggle (header, persisted per browser) reskins every product:

• Basic — clean, guided, prebuilt. The default.
• Advanced — the institutional desk: order books, an interactive 3D SVI vol surface, the risk-slice tranching engine, full greeks, and on-chain deployment detail.

Products

Nav: Portfolio · Distribution Markets · Volatility · Range Strips · Baskets · About

Product	What it is
Distribution Markets	A live BTC options chain — calls/puts across every on-chain expiry (≈15m → 22d), each a DeepBook Predict range with a $1 binary payout, priced live off the protocol's own bid/ask — plus a μ/σ distribution builder to trade your whole view of where BTC settles, not one strike. Whole contracts, depth/risk-capped, settled on Sui.
Volatility	Trade implied-vs-realized vol with prebuilt structures (straddle / strangle / butterfly / iron condor), a live payoff diagram + greeks, and a delta-hedge sleeve. Advanced adds an interactive 3D SVI vol surface + smile / term-structure analytics + a multi-leg trade builder.
Range Strips	Prebuilt DeepBook Predict range-strip strategies (Pin · Iron Condor · Breakout · Convex Tail · Protected Core · Upside Skew · Term Ladder), each priced live off the order book — plus principal-protected notes that route real Sui DeFi yield into a deployed upside strip.
Baskets	Diversified event baskets (Polymarket CLOB-priced), de-correlated by an NLP layer (TF-IDF cosine + theme clustering) so the legs are genuinely uncorrelated, not 30 variants of one bet. Basic is a clean basket terminal; Advanced is the risk-slice tranching engine (senior / mezzanine / junior).
Portfolio	Holdings, live mark-to-market, and P&L.

Note: Volatility and Range Strips share one strip-pricing engine (previewStrip → get_range_trade_amounts) — Volatility is the analyst/sculpt surface (live vol surface + free-form builder), Range Strips is the prebuilt-recipe surface (+ protected notes).

Why Sui

Pelagos isn't a generic dApp that happens to run on Sui — its core mechanics depend on primitives that only exist here.

• DeepBook Predict is the settlement venue, and it's Sui-native. Every option, vol structure, range strip, and protected-note upside leg is a real DeepBook Predict range position — priced against the protocol's live on-chain liquidity (get_range_trade_amounts) and settled natively (mint_range / redeem). DeepBook Predict is Mysten's on-chain options/prediction protocol; there is no equivalent primitive to build this on elsewhere.
• Programmable Transaction Blocks make multi-leg products one signature. A protected note atomically splits dUSDC into a floor coin supplied to the PLP vault and an upside coin minted as an 8-leg range strip — in a single wallet signature. The in-app faucet tops a wallet with mUSDC + dUSDC + SUI gas in one PTB. On an account-based chain each of these is several transactions or a bespoke router contract; on Sui, PTBs compose arbitrary Move calls atomically.
• devInspect gives real pre-trade pricing for free. Every band of a strip is priced in a single read-only devInspectTransactionBlock against live vault state — real MM bid/ask including post-trade slippage, with zero gas and no on-chain write. That's how the UI shows honest quotes instantly; it's a Sui execution feature, not a model.
• The object model makes positions first-class. Sui objects + Move resources mean every position is a real owned object — a VaultShare<T> receipt, a NotePosition<T>, a minted range — that is transferable and composable, not a row in a global balance map. Structured-product receipts, tranches, and notes are the natural shape of Sui objects.
• Parallel execution + shared objects = a trading-app feel. Owned-object transactions execute in parallel (Mysticeti consensus); shared objects (the Vault, the Predict root, the Faucet) handle concurrent multi-user access. Low, predictable gas + fast finality is what lets wallet-signed minting feel like a desk, not a settlement queue.
• Woven into Sui DeFi, not just deployed on it. The vol desk marks BTC against Sui-native venues first — Bluefin perp, DeepBook XBTC/USDC CLOB, Pyth on Sui — and the protected-note floor earns real Sui USDC lending yield (Suilend / Navi / Scallop / Kai). The data and the hedge live on the same chain as the product.
• Coin standard + shared TreasuryCap powers the demo rail. A shared mock_usdc::Faucet wraps the TreasuryCap so anyone can mint test mUSDC permissionlessly — the same DeepBook pricing on an unlimited test supply, so a demo never bottlenecks on the scarce dUSDC faucet, while the real dUSDC settlement path stays intact.

On-chain (Sui testnet)

Three Pelagos Move packages, plus Mysten's DeepBook Predict (which we call, not deploy):

• pelagos_sui — mock_usdc (freely-mintable test collateral) + prediction_market (binary markets).
• pelagos_vault — a generic Vault<T> with NAV share-price, backing baskets + Predict-backed wrappers.
• pelagos_strategies — a structured_note primitive (principal-protection floor + admin settlement).
• DeepBook Predict (Mysten testnet) — on-chain range markets. Every option / strategy leg is priced against its real liquidity via get_range_trade_amounts and settled natively.

Non-custodial: the backend builds unsigned programmable transaction blocks; the user's wallet (@mysten/dapp-kit) signs them. The backend never custodies user funds.

Collateral: every product settles in either currency, 1:1 in USD, chosen per order. dUSDC (DeepBook Predict's quote asset, faucet-gated) routes through Predict directly; Pelagos USDC (MOCK_USDC, freely mintable) settles on Pelagos's own generic Vault<T> — same DeepBook pricing, with an unlimited test supply so demos never bottleneck on the dUSDC faucet.

→ Full deployed package + object IDs and verified on-chain flows: DEPLOYMENT.md.

Quickstart

Prereqs: Node 20+, npm, Sui CLI configured for testnet, a funded testnet key.

npm install && (cd backend && npm install)

cp .env.local.example .env.local
cp backend/.env.example backend/.env        # fill in the IDs from DEPLOYMENT.md + a funded key

# backend (:13101) + monitor (:13102)
(cd backend && npm run dev)
# frontend (:13100) — in another terminal
npm run dev

• Frontend: http://localhost:13100
• Backend health: http://localhost:13101/api/health
• Monitor: http://localhost:13102

Heads-up: this is a forked Next.js with non-standard conventions (the app dir is app/app/). Read AGENTS.md before touching frontend code.

Verify

(cd app && npx tsc --noEmit)              # frontend typecheck
(cd backend && npx tsc --noEmit)          # backend typecheck
(cd pelagos_strategies && sui move test)  # Move unit tests (per package)
curl http://localhost:13101/api/health

Docs

• DEPLOYMENT.md — live testnet package/object IDs + verified on-chain flows.
• ARCHITECTURE.md — topology, backend engines, data sources, and why Sui.
• PRODUCTS.md — every product: how it's built, priced, and settled.
• README_DEEPBOOK.md — detailed DeepBook Predict integration writeup.
• MARKET_FILTER.md — the 5-stage NLP market-quality filter behind baskets.
• backend/README.md · backend/SETUP.md — backend setup.
• TEAM_SETUP.md — team onboarding (env, signing access).