Block Scholes Powers DeepBook Predict

Block Scholes is an FCA-regulated institutional crypto derivatives analytics platform. Live data, IV surfaces, and backtesting available via blockscholes.com.

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In Today's Note

• Block Scholes will support DeepBook Predict on Sui: Mysten Labs confirmed that DeepBook Predict has launched on testnet, with Block Scholes supplying institutional-grade options pricing infrastructure and acting as the pricing oracle for its binary options markets.
• Macro risk remains elevated: Iran’s response to the US peace proposal was rejected by President Trump, keeping geopolitical uncertainty high and pushing Brent crude back above $100 per barrel, while BTC traded in a volatile $80K–$82K range.
• DeFi and TradFi developments remain focused on market structure: Today’s note highlights Sui’s treasury-driven rally and upcoming stablecoin/payment upgrades, Strategy’s potential use of BTC sales to fund preferred dividends while remaining a net accumulator, and LayerZero’s post-exploit security overhaul.

Market Snapshot: Overnight Moves

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Partnerships

• Mysten Labs co-founder Adeniyi Abiodun confirmed that DeepBook Predict, Sui’s new on-chain prediction market and options trading primitive, has launched on testnet as the third core financial layer in the DeepBook ecosystem alongside Spot and Margin. The protocol has been developed in partnership with Block Scholes, who will supply the institutional-grade options pricing infrastructure and act as the pricing oracle for Predicts binary options markets.
• DeepBook Predict is designed to support binary prediction markets, options products, leveraged trading instruments, and structured products directly on-chain, with infrastructure integrated into Sui’s native central limit order book and options pricing.
• The protocol is targeting the rapidly growing on-chain derivatives sector, with DeepBook citing Polymarket’s $7B February 2026 trading volume and perpetual DEX activity reaching $7.35T in 2025, while positioning Predict as composable infrastructure where markets, leverage, liquidity, and settlement can all interact natively on-chain.

Macro & Markets

• After the US sent Iran a one-page 14-point memorandum of understanding (MOU) on Thursday last week in an effort to end the Middle East conflict, Tehran responded over the weekend. 
• According to the Wall Street Journal, as part of Iran’s peace proposal, the country offered to transfer some of its stockpile of highly enriched uranium to a third country. However, it fell short of agreeing to entirely dismantle its nuclear facilities. 
• Iranian news agency Tasnim disputed that report, stating that the WSJ’s reporting on the proposals for handling nuclear material was “not true.” 
• As part of the proposal Iran also demanded an immediate end to the war, the lifting of US sanctions on oil sales, ending the US blockade of the Gulf of Oman as well as full Iranian management of the Hormuz strait. 

• President Trump quickly responded and rejected the plan from Iran — on Truth Social he wrote, “I have just read the response from Iran’s so-called ‘Representatives’. I don’t like it — TOTALLY UNACCEPTABLE!”
• Prior to Iran’s formal response, President Trump threatened that the US might “go a different route if everything doesn’t get signed up, buttoned up,” suggesting an expanded version of Project Freedom. He said on Truth Social that Iran had been “playing games” with the US and other countries “For 47 years” and that “They will be laughing no longer!”
• Israeli Prime Minister Benjamin Netanyahu also said in a CBS interview on Sunday that the war is “not over” until Iran dismantles its nuclear capabilities.

• Brent crude oil prices jumped back up above $100 a barrel following the rejection, while BTC has whipsawed between $80K and $82K over the past 24 hours.

• While US equity futures are down slightly on the day, last Friday signs of strength in the US labour market and at the time, hopes for more positive talks to end the war, pushed US stocks to record highs. 
• The S&P 500 closed with its sixth straight weekly advance, while the Nasdaq-100 finished Friday’s session up 2.35%.
• Nonfarm payrolls rose by 115,000 in April  after an upwardly revised 185,000 advance in March according to the Labor Department's Bureau of Labor Statistics. 
• Economists had expected payrolls rising by ​62,000. The increase over March and April formed the strongest two-month gain in jobs since 2024. 
• The unemployment rate was unchanged at 4.3% against expectations of an increase to 4.4%.
  

DeFi & TradFi

• Sui, the Layer 1 blockchain developed by Mysten Labs, has seen its native token SUI rally around 40% over the past week after Nasdaq-listed SUI Group Holdings staked its entire treasury of over 108M SUI tokens worth approximately $143M.
• Mysten Labs co-founder Adeniyi Abiodun said the network will soon introduce zero-fee stablecoin transfers and private transaction functionality, positioning Sui as low-cost infrastructure for payments, liquidity movement, and AI-driven on-chain transactions amid growing market interest in privacy-focused crypto systems.

• Strategy Chairman Michael Saylor said the company may selectively sell bitcoin to support dividends tied to its STRC preferred stock program, but stressed that Strategy intends to remain a net BTC accumulator.
• “In these periods, even if we were to sell one bitcoin, we'd be buying 10 to 20 more bitcoin,” Saylor said, adding: “When I said ‘never sell your bitcoin,’ I mean make sure if you were to spend it on something, you replenish in the time you spend it,” following comments during last week’s earnings call where executives said Strategy could use its bitcoin treasury to fund STRC dividend obligations.

• LayerZero, a cross-chain interoperability and messaging protocol, issued a public apology over its handling of the April 18 exploit that drained roughly $292M in rsETH from Kelp DAO’s bridge, admitting it “made a mistake” by allowing its DVN verifier network to operate in a vulnerable 1-of-1 configuration for high-value transactions.
• The firm said the LayerZero protocol itself was not compromised, but that internal RPC infrastructure used by the LayerZero Labs DVN was allegedly poisoned by the Lazarus Group while external RPC providers were simultaneously hit by DDoS attacks, with the incident impacting a single application representing around 0.14% of LayerZero apps and 0.36% of bridged asset value.
• LayerZero said it has since disabled support for 1-of-1 DVN setups, upgraded default security configurations to multi-verifier models, developed a new Rust-based DVN client and custom “OneSig” multisig system, and is building a monitoring platform called Console to detect unsafe bridge configurations, ownership changes, and anomalous validator activity.

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