Guide to Omen by DXdao

Published on: 17.06.2021

DXdao introduced 4-step guide, which explains how to place a bet on Omen so thoroughly that even complete Crypto novices can understand.

Because Omen is decentralized and open to anyone, you don’t need to sign up or provide any personal info. Follow the steps below for placing a bet on Omen, and see Part 2 for creating a market and providing liquidity. If you run into any issues following these instructions, ask in DXdao Discord’s Omen channel, and a community member may be able to help.

Placing a Bet on Omen

1 — Acquire Dai within a Web3 wallet

This guide uses MetaMask, however Omen supports any WalletConnect-supported wallet.

A. Download MetaMask and set up a wallet. Here is a beginner’s guide to Metamask. A list of supported browsers, as well as links to official MetaMask support channels, can be found here.

B. Transfer Dai, Ethereum (ETH), or any ETH token from a crypto exchangeto your new MetaMask Ethereum wallet. You will need some Ethereum for transaction fees.

C. While most Omen markets use Dai, Omen also has markets in Ethereum and other tokens. Swapping Ethereum for Dai once you have your Ethereum in MetaMask is simple, and can be done on many decentralized exchanges including Swapr, Uniswap, and 1inch Exchange. When you swap, it’s recommended to save 0.05 ETH or so for future gas fees.

2 — Optional: Bridge Dai to xDai

This step is not required, because Omen runs on mainnet Ethereum as well. This step is also not needed to bet on xDai markets because of Omen’s xDai integration that allows bets to be placed with a mainnet wallet. Bridging will save gas if you plan to make multiple xDai transactions, however. xDai is an Ethereum sidechain with gas fees more than 1,000 times cheaper than Ethereum.

A. Add the xDai network to your wallet, as described in this guide. Make sure your wallet is open and connected to the xDai network. To connect to the xDai network using Metamask, click on the dropdown box and select the xDai network.

B. Open the Token Bridge and connect your wallet.

C. Follow this Step-By-Step guide on moving Dai to xDai. Watch this How-To Video for extra assistance.

Bonus: If you run out of xDai but need to make a transaction, xDai can be obtained in small amounts for free from a faucet such as this one. Working faucets can be found in the #faucet-requests channel of xDai’s Discord. Gas on xDai is paid using xDai, and only 1 gwei is required for transactions to execute.

3 — Connect your wallet and find a market

A. Navigate to Omen.Eth.Link and select the network of your choice in the top right corner, either Mainnet Ethereum or xDai. Each network has separate, unique markets, so this will update the list of markets displayed. Currently xDai has a wider variety of markets and lower fees.

B. Connect your wallet with MetaMask or WalletConnect.

C. Browse the list of available markets on each network and select the market you would like to place a bet in. As you browse, note the liquidity: a good rule of thumb is that your first bet should be less than half of the liquidity available, because bets larger than this suffer severely diminished marginal returns due to slippage.

4 — Place your bet

A. Select the outcome you’d like to bet on occurring. Note the liquidity and market closing date. When you buy “Shares” of your chosen outcome in Omen, your shares will each be worth 1 of the currency that the market is denominated in (in this case xDai) when the market resolves — if your chosen outcome is true, that is. If your chosen outcome is false when the market resolves, your shares will be worthless.

B. Type the amount you would like to bet. Remember to save a small amount for future transaction fees. You can try putting in different numbers to see how it would change your potential profit, which is what you could win in addition to the amount you bet. In the above example, if you bet 1,000 Dai on Andre Cronje, and Andre Cronje wins the fight, you’ll receive 1,405.09 Dai when the market resolves.

C. Click “Buy”, and approve the transaction with your wallet. Remember, because of Omen’s xDai integration you can choose to bet on an xDai market with either your mainnet Ethereum wallet or your xDai wallet. If you followed the bridging steps and are using your own xDai wallet, remember to connect to the xDai network within MetaMask.

D. Congratulations, you did it! You are now the proud owner of shares in an Omen market. If you guessed right, you’ll be able to redeem your winnings when the market resolves. In the meantime, you may continue to trade them as long as there’s liquidity.

Stay tuned for part 2 of this Guide to Omen series, which will cover creating your own market and providing liquidity.

What is DXdao?

DXdao is a decentralized collective that builds and governs DeFi products. DXdao was spawned in May 2019 through a collaboration between Gnosis and DAOstack. Reputation (REP) is voting power in DXdao, and DXD is the financial token with a claim on profit from DXdao products.

DXdao products include Omen (prediction markets), Mesa (batch auction DEX), and Swapr (governance-enabled AMM). DXdao believes in governance and decentralization.

📰 INFO:

https://dxdao.medium.com/guide-to-omen-part-1-placing-a-bet-38499ccf82fd

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