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How Isometric uses ICP

Isometric runs as a smart contract on the Internet Computer. There is no off-chain server. The protocol holds BTC under threshold-ECDSA custody, prices it from an on-chain oracle, and settles options on a schedule it controls itself.

Three properties of the Internet Computer make this design possible:

  1. Threshold ECDSA. Internet Computer nodes sign Bitcoin transactions collectively. No single node holds the key. This is what makes permissionless Bitcoin withdrawals possible without a centralised bridge.
  2. HTTPS outcalls with consensus. Smart contracts can fetch external data with the result agreed by multiple nodes. The protocol's BTC/USD oracle works this way.
  3. Self-scheduling smart contracts. The protocol can schedule itself to run on a fixed interval, paid for by the protocol itself. Settlement runs automatically with no off-chain trigger and no operator in the loop.

Where to next​

  • Mechanics: what happens when an offer is accepted, and how options settle.
  • Price oracle: how the BTC/USD price used at settlement is determined.