AMM Pool Based Instant Trading
Prediction market is the platform where people bet on the outcome of future events, like elections or sports games. You buy and sell shares in different possible results, and the prices of these shares reflect how likely people think those results are. If lots of people believe an event will happen, the price of that outcome goes up.
These markets collect and combine many people's guesses to predict what might happen more accurately than individual experts. They’re used for forecasting all sorts of events and are often better at it because they gather a range of opinions and knowledge.
Our resolution derivation is dependent on the completely decntralised truth machines like UMA and Pyth. For the resolutions where these platforms are not applicable, we take public and valid proofs from the market creator before accepting their resolution. Our resolution team does a thorough research to authenticate their provided proofs.
To make our resolutions more authentic, we make all the validated proofs publicly available after resolution. We also take any disputes, counters and protests for next 24 hours before starting the prize money distribution.
AMM or Automatic Market Making does not follow the conventional orderbook. Instead, pooled funds are used and the price and price impact are derived from the standard formula involving the available liquidity against the traded asset. The trading is done against the pool instead of any other traders directly. This makes the trading instant and does not need active maker orders to fulfil taker orders.
Using AMM smart contracts on blockchain for the prediction markets gives them a whole new non-conventional and futuristic front of transparency and authenticity.
Prophecy has implemented the most advanced AMM smart contracts on SOLANA to bet and trade the options on a prediction market. The odds are calculated using the available liquidity in the created market pool. Multiple currencies will be available to create and trade the markets.
Prophecy lets anyone create new markets, which is going to be a revolutionary and industry-first model in the on-chain prediction markets.
Any user can come and create a new market. They have to provide the initial liquidity to start the AMM pool. Once the market is resolved, they get their liquidity back plus 5% of the total pooled amount calculated before prize distribution.
Feel free to contact us. submit your queries here and we will get
back to you as soon as
possible.