Polymarket and BET are two crypto prediction markets gaining important consideration. Every leverages blockchain expertise to supply distinctive options and consumer experiences. Polymarket has accrued over $750 million in bets on the US election this 12 months, whereas the newcomer BET has acquired round $22 million since its launch this month.
How do Polymarket and BET work?
Polymarket operates on the Ethereum blockchain and makes use of Polygon as a Layer-2 scaling resolution to reinforce scalability and scale back transaction prices. This setup permits Polymarket to effectively deal with a excessive quantity of trades with out congesting the Ethereum community or incurring excessive gasoline charges.
The platform options principally binary consequence markets, the place customers can wager on “Sure” or “No” outcomes for varied occasions by way of a steady double public sale mannequin. Alternatively, markets may be made for a number of outcomes, corresponding to betting on which phrases will probably be used throughout a political speech. This mannequin ensures dynamic worth discovery, with costs representing the likelihood of an occasion occurring.
Notably, Polymarket doesn’t require customers to carry a local platform token, and it helps self-custodial wallets, enhancing consumer safety and management over funds. The platform additionally incentivizes liquidity and participation by way of varied reward mechanisms, together with liquidity supplier rewards and market-specific incentives.
However, BET is a Solana-based prediction market platform launched by Drift Protocol. It capitalizes on Solana’s excessive transaction throughput and low charges, making it a gorgeous selection for decentralized purposes. BET permits customers to have interaction in event-based predictions by buying YES or NO shares on the outcomes of real-world occasions. The platform additionally affords structured bets, permitting customers to implement complicated buying and selling methods.
Differentiating asset collateral and betting mechanisms
Polymarket’s public sale system permits for dynamic worth discovery by representing the likelihood of an occasion occurring. For instance, if “Sure” shares for an occasion are buying and selling at $0.72, it signifies a 72% likelihood of that consequence. Customers can commerce their positions anytime earlier than market decision, enhancing flexibility and liquidity. Polymarket requires customers to deposit USDC into their wallets, and the platform doesn’t necessitate holding a local token, simplifying the consumer expertise.
In distinction, BET helps over 30 cryptocurrencies as collateral, together with USDC and SOL, offering customers with important flexibility. BET additionally integrates yield technology by way of Drift’s borrow/lend platform, enabling customers to earn curiosity on their collateral whereas ready for occasion outcomes. This characteristic, mixed with structured bets that enable customers to implement complicated buying and selling methods, units BET aside within the prediction market panorama.
Polymarket focuses on simplicity and consumer accessibility by using USDC as its main foreign money, eliminating the necessity for a local token. This method reduces boundaries to entry and enhances consumer safety by way of self-custodial wallets. Polymarket incentivizes liquidity and participation with varied reward mechanisms, together with liquidity supplier rewards and market-specific incentives, fostering a wholesome buying and selling surroundings.
Conversely, BET affords a extra complicated monetary ecosystem with a number of collateral choices and yield-generation capabilities. The platform’s FUEL rewards program additional incentivizes consumer engagement by distributing tokens based mostly on buying and selling quantity, which may be redeemed inside the Drift and Solana ecosystem. BET’s monetary construction and excessive transaction throughput on Solana present a quick and environment friendly buying and selling expertise, interesting to customers looking for flexibility and extra monetary incentives.
Polymarket and BET cater to totally different consumer wants. Polymarket emphasizes simplicity and decentralized decision, whereas BET affords flexibility and yield alternatives by way of its various collateral choices and integration with Drift’s platform.
Decision instruments for prediction markets
Polymarket and BET make use of distinct decision mechanisms to find out the outcomes of their prediction markets, reflecting their differing approaches to decentralization and governance.
Polymarket makes use of UMA’s Optimistic Oracle, a decentralized and trustless system, to resolve market outcomes. This mechanism integrates real-world information into sensible contracts, which is crucial for figuring out the outcomes of assorted wagers. When a market is created, a decision request is mechanically despatched to the Optimistic Oracle.
Proposers inside the UMA system submit solutions to this request backed by a bond. If the proposed reply is uncontested, it’s accepted after a problem interval, sometimes two hours. In case of disputes, the system resets the query and points a brand new request to make sure trivial disagreements don’t impede decision. Persistent disputes escalate to UMA’s Information Verification Mechanism (DVM), the place UMA token holders vote on the right consequence, often resolving inside 48 to 72 hours. This course of illustrates Polymarket’s dedication to a community-driven and clear decision system.
BET resolves its markets by way of a structured course of managed by a safety council and an elected multisig beneath realms governance. On the designated decision time, the safety council updates the oracle with a binary consequence (0 or 1), representing the occasion’s end result. Following this replace, an expiry date is about for the market, after which it enters a “scale back solely” mode, stopping new positions from being opened or present ones from being elevated.
The market is settled based mostly on the oracle’s consequence, and customers can then settle their positions on the decided settlement worth. In a shortfall, the place the market lacks ample funds to cowl all positions, the shortfall is socialized into the settlement worth, doubtlessly decreasing the payout even when the decision was set to 1. This structured method ensures equity and transparency, with mechanisms to deal with potential monetary shortfalls.
Thus, Polymarket emphasizes decentralization and group involvement by way of UMA’s oracle, whereas BET focuses on structured governance and safety council oversight to make sure correct and honest market outcomes.
Consumer incentives and reward methods
Polymarket incentivizes consumer engagement by way of varied reward mechanisms designed to reinforce liquidity and participation. Considered one of its main incentives is the liquidity supplier rewards program, which inspires customers to put resting restrict orders close to the market midpoint. This program goals to create a balanced and liquid market by rewarding customers weekly for sustaining wholesome market circumstances.
Polymarket often runs public competitions based mostly on revenue and loss or buying and selling quantity to additional stimulate consumer exercise. These incentives, mixed with the platform’s use of USDC and self-custodial wallets, make Polymarket a gorgeous choice for customers looking for an easy and safe buying and selling expertise.
BET affords a distinct set of incentives by way of its FUEL rewards program. This program rewards customers with FUEL tokens based mostly on their buying and selling quantity, which may be redeemed inside the Drift and Solana ecosystem for varied advantages. BET additionally offers yield-generation alternatives, permitting customers to earn curiosity on their collateral whereas ready for occasion outcomes. This characteristic and the platform’s help for over 30 cryptocurrencies as collateral provide customers important flexibility and potential monetary advantages. BET’s structured bets characteristic additional enhances its enchantment by enabling customers to implement complicated buying and selling methods, corresponding to taking lengthy positions on prediction markets whereas shorting Bitcoin.
Abstract of Polymarket vs BET
Polymarket leverages Polygon to reinforce scalability and scale back transaction prices. This setup permits the platform to deal with a excessive quantity of trades with out congesting the Ethereum community or incurring prohibitive gasoline charges. Polymarket makes use of UMA’s Optimistic Oracle for market decision with a dedication to decentralization and community-driven governance. This oracle system ensures honest and clear market outcomes by integrating real-world information into sensible contracts and permitting for group voting in case of disputes.
BET capitalizes on Solana’s excessive throughput and low charges, making it a quick and environment friendly platform for decentralized purposes. Its decision course of includes a safety council, an elected multisig beneath realms governance, which updates the oracle with the occasion’s consequence. This structured method ensures correct and honest market resolutions, with mechanisms in place to deal with potential monetary shortfalls.
Each platforms provide various market alternatives, with Polymarket supporting varied subjects, together with politics, sports activities, and leisure. BET initially focuses on political occasions however plans to develop into sports activities and cultural occasions, broadening its market attain. These variations spotlight the platforms’ distinctive strengths: Polymarket emphasizes simplicity, safety, and decentralized decision, whereas BET affords flexibility, yield alternatives, and a structured governance mannequin. Customers can select between these platforms based mostly on their preferences for market range, monetary incentives, and technical infrastructure.
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