The crypto space is saturated with platforms designed to transfer wealth from one wallet to another. Many of them are difficult to get started if you are new and can cause extremely complicated problems for DeFi novices.
But not everyone wants to stake tokens on another staking service and calculate three-way returns balanced by the interest paid on the loans. Some people just want to have fun and participate in the decentralized finance space with fewer strings attached. This is where DeFi prediction markets come in.
What are DeFi prediction markets?
For starters, prediction markets are a fairly common place for Vegas professionals to test their crystal ball. These markets allow punters to bet on the future outcome of hot topics ranging from the mundane, like whether Punxsutawney Phil will see his shadow, to furiously debated issues like whether the United States will confirm that aliens exist.
Prediction markets are ideally suited to the DeFi space due to smart contracts removing human error, the speed with which funds can be distributed and settled, and the comfort users can have knowing that once the funds distributed, they can do with them what they want. please.
An important aspect to focus on about DeFi prediction markets is that they are not the same as futures markets, which bet on the price of an asset within a certain time frame. DeFi prediction market participants bet on the outcome of an asset’s rise or fall over a given period of time. The result should also be binary, like yes/no, high/low, A/B.
For example, BTC Battles, a DeFi prediction market based on Polygon, allows users to bet on whether the price of BTC will be higher or lower (up or down) at a set time every 60 seconds.
How DeFi Prediction Markets Stand Out
In addition to being decentralized, DeFi prediction markets are different from traditional markets in several ways.
The most obvious difference is that they are decentralized, meaning that no single entity controls the regular operation of these platforms. They are governed by smart contracts whose security can be audited and reviewed by users if they are open source.
Some of these platforms also allow users to create their own marketplaces, adding an aspect of user participation that centralized platforms generally lack since the house sets the rules.
Popularity of DeFi prediction markets
The popularity of decentralized prediction markets has been on the rise since the launch of Augur, which is an Ethereum-based Oracle and DeFi prediction market. This is a large predictions market that users can bet on, such as various real-world events and sporting events. It is worth noting that Augur’s move into sports betting is likely to be very lucrative for the platform, as sports betting is legal in France. most US states and is a $242 billion walk.
However, while Augur appeals to the general public due to the wide availability of betting markets it offers, smaller platforms with much simpler interfaces are likely to resonate with users as well.
This is the type of appeal that platforms like BTC Battles bring to the industry: a simple, arcade-like user interface that requires bettors to simply connect their Polygon wallet to start betting on whether the price will rise or fall. price of BTC.
The appeal is palpable if user response is any indication. Currently, more than 60% of BTC Battles users use the referral program to onboard their friends and earn passive income at the same time. This passive income is not deposited into a centralized account: it is sent directly to each user’s Web3 wallet.
Additionally, volume on the platform increased by 300% as over 10,000 active users started betting on BTC Battles. This increase in volume is facilitated by the enormous success rate of 60% of players on the platform!
How BTC Battles Stand Out
BTC Battles touts an ecosystem characterized by decentralization and transparency, so users can log into the app with their own Web3 wallet, such as Metamask.
The entire device is based on smart contracts on the Polygon blockchain network, giving the platform complete automation. This automation extends to the payment of winnings – which are numerous – to each player’s Web3 wallet. This not only streamlines gameplay but also demonstrates the high transparency of the platform which inspires trust since there are no actors behind the scenes pulling the strings.
An indispensable facet of BTC Battles, which resonates deeply with traders and crypto enthusiasts, revolves around speed. On Polygon, transaction speeds are significantly faster, providing a distinct advantage to committed players. For adept chartists and individuals with a keen instinct for the crypto sphere, the rapid 60-second turnaround time on each betting round presents a lucrative opportunity, allowing them to accumulate substantial profits in the short span of time. time for each new round.
In the game, two cohorts of players compete against each other for rewards. First, there is the UP faction, which is betting on the prospect of $BTC prices rising. Conversely, the DOWN faction bets on a drop in prices.
The odds for each round depend on the total betting volume and are influenced by the dominant split between the two pools. If more participants align with UP, it will tilt the odds favorably for DOWN.
Fans of betting systems in the Web2 domain will love the simplicity and speed offered by Web3 betting systems like BTC Battles. Players can be confident that their trades will be executed seamlessly, allowing them to immerse themselves in the action that is taking place. This assurance addresses a major concern shared by gamers on analog platforms, which may not guarantee consistent performance, thus harming the overall gaming experience.
This article was written by an external contributor and does not represent the views of Benzinga and has not been edited for content. This contains sponsored content and is for informational purposes only and is not intended to constitute investment advice.
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