The creator sets the price of the event between 0% and 50% and earns from trading fees.Ģ) Low Fees. With Augur, any user can create a market for any real-world event for a small fee. With traditional prediction markets, everyone participates in trading shares of a prediction. In July 2018, the first version of Augur was released to the public.Ģ) User-generated markets. With development having initially commenced in 2014, Augur is a pioneering protocol within the crypto prediction market space, which aims to “democratize” finance. In this article, we’ll take a look into some of the hottest up and coming DeFi prediction markets, to provide readers with some further information about the products which are available to them.Īugur is a decentralized prediction market founded on Ethereum’s ERC-20 protocol. This is facilitated through the use of smart contracts, which execute autonomously and without the input from centralised authorities as soon as certain conditions are met. Prediction markets are oftentimes more accurate than general polls or bookmakers’ odds, because every entity trading on the market conducts their own research to make an informed speculation.Īs the crypto space continues its disruptive emergence into the financial and societal mainstream, the blockchain technology which underpins it provides a new dimension to the prediction market space.Ĭrypto prediction markets are decentralized finance (DeFi) protocols which allow anyone, regardless of arbitrary factors such as status, location or nationality, to trade the outcome of events. I.e., as opposed to participants betting on the outcome of an election by predicting which stock will rise and fall according to the outcome, prediction market users have access to predicting the direct outcome itself rather than an indirect result of the outcome. Unlike public markets such as stocks or bonds, where bets are placed indirectly via the effects these outcomes are expected to have on asset prices, prediction markets enable users to bet directly on a piece of information that they believe is valuable. Prediction markets allow users to monetise their ability to accurately forecast future events, trading contracts which pay out based on the results of these unknown events. As the future of finance takes on a new, decentralised form, it’s no wonder that crypto prediction markets have been booming in popularity over the past years, with new and exciting players entering the game. Whether it be sports results, election outcomes or future asset prices, the ability to accurately predict the future has captivated market participants since the inception of markets themselves.
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