2 min read
Prediction Market

Prediction Market is a prediction market protocol where users can trade binary outcomes (Yes/No) via an AMM. Prices move dynamically based on supply/demand (probability-style pricing), and an oracle resolves the market at the end so winning token holders can redeem for ETH.

🚀 What it does

  • Buy and sell Yes/No outcome tokens with ETH
  • Dynamic probability pricing driven by AMM reserves and trading activity
  • Provide/remove liquidity and earn fees (LP role)
  • Oracle-based market resolution and post-resolution redemption
  • Multi-role UI: User / Liquidity Provider / Oracle

🔄 How it works (high-level)

  1. A market is created with an oracle, a question, and initial liquidity parameters
  2. Users buy/sell Yes/No tokens; the AMM adjusts price (implied probability) based on reserves
  3. Liquidity providers manage liquidity and collect trading revenue
  4. When the event ends, the oracle reports the winning outcome (one-time)
  5. Winning token holders redeem tokens for ETH at a fixed token value

🛠️ Tech Stack

CategoryTechnology
Smart ContractsSolidity, Hardhat, OpenZeppelin
FrontendNext.js, React, TypeScript
Web3Wagmi, Viem, RainbowKit
Data FetchingTanStack Query
UITailwindCSS, shadcn/ui

✨ Highlights

  • Probability-style pricing: real-time probability visualization that responds to trades
  • Role-based workflow: separate interfaces for traders, LPs, and oracle operators
  • Clear settlement flow: oracle resolution enables deterministic redemption for winners

🏛️ License

MIT