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DeFi protocol Drift has launched a prediction market referred to as BET on the Solana blockchain, based on an Aug. 19 assertion.
Drift Protocol co-founder Cindy Leow likened BET’s prediction market to perpetual buying and selling. She defined that, simply as perpetual merchants guess on potential worth adjustments in crypto, prediction markets permit for monetary stakes within the outcomes of real-world occasions.
She acknowledged:
“Taking actual occasions into permissionless financialization opens up the door to guess on all the pieces from making a hyperlocalized guess with a couple of buddies to making an attempt to foretell the result of a US presidential election.”
BET options
BET operates equally to Polymarket, permitting customers to buy YES or NO shares on an occasion just like the upcoming US presidential election.
Nonetheless, the Solana-based platform stands out by permitting customers to make use of over 30 cryptos — together with USDC and SOL, amongst others — as collateral. Customers additionally earn a yield on their property earlier than the occasion’s final result is decided.
Moreover, BET provides customers the flexibility to hedge their predictions with “structured bets.” This characteristic permits them to take a protracted place within the prediction market whereas shorting Bitcoin. The platform additionally includes a rewards system referred to as FUEL, which is designed to spice up buying and selling exercise and incentivize person engagement.
Whereas BET is initially targeted on the US elections, plans are underway to increase into different areas, reminiscent of System 1 and different crypto and cultural occasions.
Prediction markets’ recognition
Decentralized prediction markets have surged in recognition this 12 months due to Polymarket’s success. These platforms permit customers to guess on occasions, starting from sports activities outcomes to geopolitical incidents.
Ethereum co-founder Vitalik Buterin has notably praised prediction markets as one of many main social epistemic applied sciences of the 2020s. He stated:
“[These markets are] truth-seeking and democratic, constructed round open public participation somewhat than pre-selected elites.”
Nonetheless, the market’s rising recognition has drawn regulatory scrutiny. The US Commodities Futures Buying and selling Fee (CFTC) and lawmakers like Senator Elizabeth Warren have expressed issues concerning the affect of those bets on public curiosity and referred to as for his or her restrictions.
Conversely, crucial gamers within the crypto business, reminiscent of Coinbase and Gemini, oppose these regulatory strikes, arguing that they’re economically flawed.