Prediction Markets Launch on Dfyn Exchange
Dfyn announced the launch of prediction markets on the Dfyn Exchange which will allow users to predict if the price of the assets will go up or down in the next 5 minutes.
Such products have actively existed and traded in the traditional financial markets, they are finally bringing binary prediction markets on Polygon. The mission of Dfyn is to make DeFi more accessible for the masses and they are starting off with one of the simplest financial instruments in the world.
In the current iteration, they are launching prediction markets for the MATIC token. They are working on integrating two other tokens for prediction markets.
🔹How do the prediction markets work?
The working of Dfyn’s prediction markets is quite straightforward. However, before diving into how the prediction markets work, the users should be familiar with a few terms.
- ↑ Bull: Predicting that the price of an asset will increase.
- ↓ Bear: Predicting that the price of an asset will decrease.
- Payout: Expected returns on the initial amount locked in the market. When a round is live, users will be shown the expected payout for both positions. However, only those who correctly predicted the price direction would receive the payout.
- Locked Price: Price of the asset when a round goes live. It serves as the reference price when determining whether the market has gone up or down.
- Prize Pool: Total tokens locked in a particular round.
- Closed Price: The price of the asset at the end of a round.
- Rounds: The prediction markets are divided into rounds that remain live for a duration of 5 minutes. Each round is further categorized into three phases:
- Next Phase – During this phase, the users can enter their position, i.e. either bull or bear.
- Live Phase – During this phase, the locked price is set, and participants can monitor live movements in MATIC’s price. At the end of the live phase, a snapshot of MATIC’s price will be taken and compared to the locked price. Rewards will be distributed based on whether the closed price is higher or lower than the locked price.
- Expired Phase – When the live phase comes to an end, the round is marked as expired.
To participate in the prediction markets, users can visit this link and predict whether the price of MATIC will rise or fall from the time a round goes live.
What is Dfyn?
Dfyn is a multi-chain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-chain liquidity super mesh that is being enabled by Router Protocol.
📰 INFO:
https://dfyn-network.medium.com/introducing-prediction-markets-beta-on-dfyn-exchange-db06bdf03abd
