PreSaga previews— an introduction
With 2021 just around the corner the same can be said for our first community dapp’s release!
Following up on our most recent update we’ve decided to release a couple of previews to show the community how PreSaga is shaping up. If you haven’t yet, we recommend you read our latest development update to get up to speed on further details concerning PreSaga. You can find it here: https://medium.com/meridian-network/latest-proposal-presaga-news-and-more-ea847b904f75
Without further ado, let’s see them.
Home page
Our home page will feature a minimalist cover with a header containing all relevant buttons for the website. Users will be able to access the markets section from the “Markets” button, as well a user guide specifically made for anyone interested in participating in PreSaga’s markets.
Further down there will be an introductory section elaborating on both ways users can participate in PreSaga (the beginning of which can be seen on the image below) as well as the key aspects of our system. These will be followed by the “Markets” section, containing both active and closed markets.
The footer will present a short description of PreSaga along with social media hyperlinks and the PreSaga and Meridian brands, and a few buttons for the “Contact”, “Disclaimer” and similar.
Market example
Above you can find the example for a single market, in this case called “Will Trump win the 2020 elections?”. Each image represents a different operation.
For better understanding let us explain a few aspects of PreSaga’s system. The price for YES and NO shares of any given market is always a value between 0 and 100 LOCK (technically between 1 and 99, since 0 and 100 only occur once the market expires). Once the market does expire, the winning shares (YES or NO) will be worth exactly 100 LOCK each, while the losing shares will be worth 0 LOCK. Users will be able to redeem their shares on the interface itself. While the market is active, the price of both YES and NO will vary according to purchases and sells, much like Uniswap. If a lot of people are buying YES, then the price of NO will decrease and the price of YES will increase, and vice versa. You will notice that the sum of both YES and NO’s price is always 100 LOCK, regardless of volume and liquidity.
Let’s take a look at the above images.
In the first one, the user intends to buy YES shares as he believes Trump will win the election. Specifically, he intends to buy 228.15 YES shares at a price of 16 LOCK each, spending a total of 3650 LOCK (the “Estimated price” shows 17 LOCK because slippage needs to be taken into account, same as with Uniswap).
Should Trump win the election, the user would be able to swap his 228.15 YES shares for 22,815 LOCK, meaning a profit of 19,165 LOCK (525%). Of course this is a highly unlikely scenario hence the big reward. The user might also decide to sell the shares before the market closes, although at a lower price.
As for the second image, the user intends to sell NO shares. In this case, he is planning on selling 62.45 NO shares at a price of 84 LOCK each, for an estimated total of 5308 LOCK.
Let’s assume the user bought these NO shares when they were at 50 LOCK each, which would have costed him 3122 LOCK (62.45 shares at 50 LOCK). By selling them now, he is pocketing a total profit of 2186 LOCK (70%). Of course, the user could have also chosen to wait for market expiration and swap them for 100 LOCK each should Trump indeed loose, however he decided not to take any further chances and swapped them now for a smaller profit. Our market maker allows anyone to buy and sell both shares at any time as long as the market is still active.
You might have noticed the liquidity section at the bottom. That is another feature our users will be able to take advantage of. By adding LOCK to each market, participants can collect fees on each trade for that market, similar to how Uniswap works. When a user adds liquidity, both YES and NO shares are added to that specific market, increasing its overall liquidity. The user will receive liquidity provider tokens, again in the same way as Uniswap works, which allows them to later remove said liquidity.
We will elaborate further on how these mechanisms work in our user guide, released alongside PreSaga’s beta.
Marketing update
As stated, this week marks the beginning of our next marketing stage.
As so, let us take this opportunity to announce we will be attending an AMA with one of the biggest crypto groups within Telegram, the JTS Blockchain Community.
They have had AMA’s with several major projects, such as Bittorrent, Okex, Kyber Network, among others, having also recently hosted an AMA with Justin Sun from Tron.
The AMA will be held Friday, November 27th 2020, at 8am PST (16pm UTC).
Telegram channel:
Twitter profile:
https://twitter.com/JTS_Global
This is not the only marketing action you’ll be seeing this week so make sure to keep an eye out for our usual channels!
Talk to you guys soon!
The Meridian team
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