A Preview of the PredictX Product
Whether you’re new to fintech or you’ve been trading for a while now, the world of prediction markets and Decentralized Finance (DeFi) can get pretty confusing. You may want to dive deeper into prediction trading or even become a liquidity provider (LP), but what does that actually mean for you? Moreover, what product does PredictX offer to make these processes as fast and lucrative as possible?
In today’s post, we will take a closer look at what the PredictX product looks like. Using laymen’s terms and examples, we will explain exactly what we offer, how you can use our product, as well as the advantages Predictx has over the competition. So, let’s get started!
What Is the PredictX Product?
At its core, the PredictX product offers live, AMM-based prediction markets that are optimized through DeFi where users can trade and earn on the outcomes of real world events.If that sounds complicated, just stay with us. We will explain exactly what all of that means shortly. To make it simpler, let’s break down some of the more difficult terms and concepts.
First, AMM stands for “Automated Market Maker.” This is essentially an algorithm (or set of algorithms) that prices assets within a liquidity pool, which is a private collection of funds used to trade different assets. These algorithms are often referred to as “smart contracts,” as they dictate various trading and pricing rules to protect both traders and liquidity providers (LPs). Therefore, the foundation of the PredictX product is the use of smart contracts to facilitate safe, efficient pools for private asset trading.
Next, let’s move on to prediction markets. A prediction market works much like any other kind of market. However, in prediction markets, you are allocating funds to potential outcomes of events rather than traditional goods or resources. Assets are traded and prices rise and fall based on the crowd’s belief in the certainty or uncertainty of a given outcome.
What does it mean to Trade?
So, within a given liquidity pool, you can allocate funds towards an outcome of an event that interests you. For example, you might think that a given candidate will win an upcoming election. You put your funds into that candidate winning (let’s say at $0.5 which implies a 50% chance of him winning) and, if many other people agree with you and also put their funds into that candidate, the value of your position will rise. As the event draws closer, the actual outcome will also affect the final value of your prediction. The price is binary, meaning your position will either go to $0 or $1.00 as the outcome will eventually rise or fall to 0% or 100%, depending on whether the event actually happens or not.
Finally, we will examine why PredictX is optimized by DeFi. As the name implies, DeFi is a financial system that does not rely on traditional lenders, brokerages, or other financial intermediaries. Instead, the entire system is based on smart contracts created and maintained on blockchains. As you can see, PredictX offers live prediction markets for traders and liquidity providers to trade different outcomes using AMM smart contract algorithms.
What does it mean to Earn?
Now that you understand the trading side of PredictX better, let’s examine the liquidity provider side of PredictX product. Taking the previous election example, the liquidity pool in which you allocated funds towards your candidate winning has to have funds in the first place for you to take a position. This is where liquidity providers come in who provide their funds that are allocated to both your candidate winning and your candidates losing. In the example, this would be $0.5 to win and $0.5 to lose in the liquidity pool. In exchange for doing so, liquidity providers will earn fees each time someone trades the pool aka what was described in the Trade example above. Additionally, liquidity providers will earn the native PredictX token (PRED) based on the time and amount of liquidity that he provides. Not only that, but the liquidity deposited in the pool will also integrate with other DeFi protocols that will attract additional yield. So in essence, liquidity providers will be able to earn via three avenues: fees, native token incentives, and interest.
What Can You Do With PredictX?
There are essentially two roles that you can take on PredictX: Trader and Liquidity Provider. Naturally, you don’t have to pick just one; you can provide assets to a liquidity pool and still take advantage of prediction marketing trading. Either way, PredictX allows you to make live trades on future events, invest in different liquidity pools, and even vote on future events to predict. This makes PredictX the one-stop shop for all prediction investments and trading!
What Are the Advantages of Using PredictX?
So, what makes PredictX better than other prediction market platforms? While the PredictX team is working to improve our product every day, we can already boast all of the following benefits:
- Faster and cheaper transactions through Polkadot and Binance Smart Chain (BSC)
- Enhanced incentives for both liquidity providers and traders
- Non-custodial, non-centralized, and open to everyone
- Seamless UI/UX for optimum user engagement
To learn more about PredictX, review our whitepaper, and stay updated on our protocol’s latest developments, check out the PredictX Market today!
If you’d like to reach us directly or you have any additional questions about the PredictX product, you can also get in touch with one of our team members at any of the following links:
- Twitter: https://twitter.com/1PredictX
- Telegram Chat: https://t.me/PredictX_Official
- Telegram ANN: https://t.me/PredictX_OfficialANN
- Medium: https://predictx-official.medium.com/
