Builder Series #2: Polkamarkets
Polkamarkets Labs chose to use Bepro Network codebase for the development of its platform at https://app.polkamarkets.com.
Our technology is being employed for its prediction market matching engine, Decentralized Finance (DeFi) features, backend infrastructure, and solidity framework.
Fully on-chain and peer-to-peer prediction market code is one of the use-cases that have been incrising as the next wave of consumer adoption in blockchain apps, and we began the research and development of this technology to extend our codebase offering.
In this article, we’ll examine how the predictive market company employed Bepro’s Network codebase to develop several features. But first, let’s look a closer look at Polkamarkets.
Polkamarkets is an Autonomous Prediction Market Protocol.
The company aims to address low usage and volume concerns by incentivizing liquidity providers and traders to facilitate and take large positions, while a curation and resolution system ensures efficient and trustworthy markets.
In addition, the platform leverages tried-and-true DeFi incentives such as liquidity mining and yield farming to incentivize everyday active use.
Polkamarkets is Gamifying Prediction Markets
Polkamarkets is committed to bringing gamified and entertainment-first prediction markets to its users. Key gamification use-cases such as DeFi rewards, live-streaming, virtual events, live chats, and NFTs are all features Polkamarkets is building into their product. Bepro Network is providing code for many of these features.
Additionally, Polkamarkets is augmenting its technology offering by using some of our existing Solidity frameworks and backend infrastructure to harden its prediction market systems.
The benefits of employing bepro.js codebase
With the bepro-js prediction market codebase, developers can quickly create sophisticated contracts to govern several market activities including creating your own token for utility and governance, adding and removing liquidity, and buying and selling outcome shares.
A general and more comprehensive guide can be found below with examples, including a step-by-step process on how all of this was accomplished by their development team (with help from Bepro Network Labs’ development support agents via discord and telegram).
Core contract: PredictionMarket — a protocol that enables users to place predictions on event outcomes — through buying/selling shares of event outcomes.
The mechanics for every market work in a similar fashion of DEXes such as Uniswap. Users can contribute liquidity to markets by buying and selling shares of event outcomes, with the liquidity providers receiving a fee for each transaction.. A price between 0 and 1 (of the EVM currency) will always be guaranteed by the Automated Market Maker — the same way DEXes work.
The event resolution is crowdsourced and decentralized, through Reality.eth — https://reality.eth.link/
When a market is created, a question is opened in Reality.eth smart contract. After the market is closed, the question is opened for answers using POLK bonds. When the question is finalized, PredictionMarket queries Reality.eth to fetch the winning outcome and calculates the payouts.
How it works
In summary, the core flow is the following:
- Users create markets in PredictionMarket
- While the market is open, users can add/remove liquidity, and buy/sell market outcome shares
- After the market expires, a decentralized resolution process starts through Reality.eth.
- After the market resolution is finished in Reality.eth, the market resolves to the winning outcome and calculates the payouts.
- After the market resolution, users can claim their winnings and liquidity.
Additionally, you can find open issues and test issues created by Polkamarkets at https://development.bepro.network/bounty?id=9&repoId=1
Polkamarkets is an incredible brand and we’re happy to be providing our codebase to augment their prediction market technology. The ability to hedge against the future and take positions on outcomes in a prediction market is already a huge use case for blockchain.
The bepro.js codebase can be deployed in a variety of blockchain-related industries. Polkamarkets and RealFevr are two excellent examples of how you can leverage our technology to develop and grow your business.