Polars: Base Concept (How to make money on the platform)

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Polars Platform

5 min readSep 29, 2021

We are already in the process of launching the Polars mainnet and the Big Trading Competition is starting very soon (December 3, 2021). In connection with the launch of the referral program and a large-scale marketing campaign, many new users will get acquainted with the Polars concept. In this article, we want to briefly describe the basic concept of Polars and detail the options for earning money on the platform a little. We would like you to share this article in order to quickly convey the essence of the project to new users.

Polars is a polar token protocol that we first applied to the prediction market. The essence of the polar token protocol is that if one of the tokens rises in value, then the second falls, but their total collateral remains unchanged.

The Polars Platform is a Defi platform on the prediction market based on the Polars Token Protocol. In this concept, we managed to combine Predictions, Trading, Arbitrage and the entire set of Defi mechanics (Liquidity Providing, Farming, Staking, Lending), NFT, as well as game elements.

The platform allows users to make money on predictions, trading, arbitrage and on the liquidity providing in the Trade Pool. Additionally, users receive rewards for the created trading volume and for the trading volume of invited referrals.

The first version of the protocol is deployed to Binance Smart Chain. In the future, the platform can be deployed on any other networks that support smart contracts (HECO, Near Protocol, Solana …)

Base Concept

There are two teams on the platform: White Team and Black Team.
Each team has its own token of the same name: WHITE and BLACK.
If the White Team wins, then the WHITE token rises in value, and the BLACK token falls in value. But their aggregate collateral remains unchanged. Conversely, if the Black Team wins, then the BLACK token rises in value, and the WHITE token falls in value. But their aggregate collateral also remains unchanged.
Which team wins and which one loses is influenced by the results of external events: Sporting events, exchange rates, and other events in which opposing sides are present.
Dozens of events can take place on the platform every day, and the price of polar tokens can change dozens of times, which creates opportunities for predictions, trading, arbitrage and liquidity providing.

App Mechanics

There are two pools on the platform: Prediction Pool and Trade Pool.

Prediction Pool

This is a unique Pool powered by Polars. It has its own unique math of the polar token protocol.

This pool has unlimited liquidity and you can buy WHITE and BLACK tokens in unlimited quantities at a fixed price with no slippage.
You can always sell all available polar tokens back to the Prediction Pool, since all tokens are fully backed by the underlying asset for which you bought these tokens.
The Prediction Pool is closed for the duration of the event. You will not be able to make trades while the event is in progress. As soon as the event ends, the price of the polar tokens changes according to the results of this event and the Prediction Pool reopens. Now you can buy and sell polar tokens again, but at new prices.
We can say that the Prediction Pool is open between the end of the previous event and the beginning of the next one. The time between events is intended to allow users to make their predictions, enter or exit a position. During the event, the Prediction Pool is closed, but the Trade Pool is open, where you can trade with polar tokens around the clock.

Trade Pool

Trade Pool is a full fork of Balancer. It contains 2 tokens: WHITE and BLACK. Users add liquidity to this pool in order to earn commissions and receive Farming Rewards. The rest of the users can buy, sell and exchange polar tokens.

When the Prediction Pool is closed due to an event in progress, users can freely make trades in the Trade Pool. But keep in mind that the price in this pool is market, not fixed. It depends on the sentiment of users in relation to the results of the current event.
There can be quite a lot of volatility during the event, and you can profitably buy or sell polar tokens.
When the Prediction Pool with new prices and unlimited liquidity is opened after the end of the event, the prices in the Trade Pool will be leveled out through arbitrage trades, which creates additional earning opportunities and generates additional trading volume on the platform.

Events

Various events are held on the platform, in which the opposing sides are present.

For example, Bitcoin price forecast for the next 30 minutes. If the price rises, then the White Team wins and the WHITE token grows, and the BLACK token falls, and vice versa.
Or Football. On the side of the White Team is Barcelona, and on the side of the Black Team is Real Madrid. If Real Madrid wins, the price of BLACK will rise and the price of WHITE will fall.
If the event ends in a draw, the price of the polar tokens remains unchanged.
The average volatility of polar tokens is about 5%.

Earn

Users can add liquidity to the Trade Pool and earn on commissions. You can learn more about this in this article: https://medium.com/polars-platform/polars-how-much-liquidity-providers-can-earn-calculator-2b3a40cd089d

Users can receive additional rewards for their activity on the Polars platform. You can read about Farming mechanisms in this article:https://medium.com/polars-platform/polars-farming-how-to-get-pol-for-activity-on-the-platform-6b6d805fdb90

Users can add existing POL tokens to fundamental staking and receive additional rewards based on trading volume on the Polars platform. More details here: https://medium.com/polars-platform/polars-staking-how-to-get-the-most-out-of-every-pol-a8764cc61700

Polars has a very profitable and fair referral program that is based on the trading volume of the referrals you invite. Basic information in this article: https://medium.com/polars-platform/polars-referral-program-trading-volume-rewards-2c0464390c4

Polars Business Model

Now the commissions that were paid by users for transactions in Prediction Pool will be distributed as follows:
40% — POL buyback and burning
40% — Buyback and distribution among Advanced Users.
15% — Operator’s commission (maintaining the functionality of smart contracts, network commissions, payment of data providers)
5% — Increase the сolaterization of polar tokens (WHITE and BLACK)

Now the commissions that were paid by users for transactions in Trade Pool will be distributed as follows:
70% — Liquidity providers who have added liquidity to the Trade Pool.
30% — Buyback and distribution among Advanced Users.

Polars Big Trading Competition on the testnet

More details here: Polars: Big Trading Competition on the testnet ($300k+, NFT and 30% Airdrop)

Polars

The new DeFi platform for creating secure polar tokens, the price of which depends on the results of specific external events. Within the POLARS platform, users can buy, sell and exchange polar tokens, as well as participate in the distribution of the platform’s commission income.