What Are The Odds That DeFi Prediction Markets Hit The Big Time?

The crypto space is saturated with platforms that are designed to shift wealth from wallet to wallet. Many of them are difficult to get started on if you are new, and can cause exhaustingly complicated problems for DeFi novices. 

But not everyone wants to stake staked tokens on another staking service and calculate three-way yields balanced by interest paid on loans. Some people just want to have fun and participate in the decentralized finance space with fewer strings attached. That’s where DeFi prediction markets come in.

What are DeFi prediction markets?

For starters, prediction markets are a fairly common place for Vegas professionals to test out their crystal ball. These markets allow wagerers to bet on the future outcome of hot topics ranging from the most mundane, like whether Punxsutawney Phil will see his shadow, to furiously debated issues like whether the US will confirm that aliens exist.

Prediction markets are perfectly suited for the DeFi space due to smart contracts removing human error, the speed at which funds can be distributed and settled, and the comfort that users can have knowing that once funds are distributed, they are theirs to do with as they please.

An important aspect to focus on with DeFi prediction markets is that they are not the same as futures markets, which bet on the price of an asset within a certain time frame. DeFi prediction market participants bet on the outcome of an asset’s move up or down in a time frame. The outcome must also be binary, such as yes/no, up/down, A/B.

For example, BTC Battles, a Polygon-based DeFi prediction market, allows users to bet on whether the price of BTC will be higher or lower (up, or down) at a set time every 60 seconds.

Aside from being decentralized, DeFi prediction markets are different than the traditional ones in a number of ways.

The most obvious difference is that they are decentralized, meaning that no single entity is in control of the regular operation of these platforms. They are governed by smart contracts which may be audited for security and reviewed by users if they are open source.

Some such platforms allow users to create their own markets as well, adding an aspect of user participation that centralized platforms tend to lack since the house makes the rules.

DeFi Prediction Markets Popularity

The popularity of decentralized prediction markets has been on the rise since the launch of Augur, which is an Ethereum-based oracle and DeFi prediction market. This is a broad market of predictions that users can bet on such as various real-world events and sporting events. It should be noted that Augur taking on sports betting is likely to be very lucrative for the platform as sports betting is legal in most US states and is a $242 billion market.

However, while Augur has appeal to masses due to the wide availability of betting markets it offers, smaller platforms with far more straightforward interfaces are likely to resonate with users, as well.

This is the type of appeal that platforms like BTC Battles brings to the industry: a simple, arcade-like UI that requires betters to merely connect their Polygon wallet to begin placing wagers on whether the price of BTC will go up or down.

The appeal is palpable if the user response is to be any indication. As of now, more than 60% of the BTC Battles users are utilizing the referral program to onboard their friends and earn passive income at the same time. That passive income is not deposited to a centralized account – it is sent directly to each user’s Web3 wallet.

Furthermore, the volume on the platform has increase 300% as over 10,000 active users have begun wagering on BTC Battles. That increase in volume is helped along by the tremendous 60% success rate of gamers on the platform!

How BTC Battles Sets Itself Apart

BTC Battles touts an ecosystem characterized by decentralization and transparency, so users can connect to the app with their own Web3 wallet, such as Metamask.

The entire apparatus is underpinned by smart contracts on the Polygon blockchain network, which gives the platform complete automation. This automation extends to the disbursement of winnings – of which there are many – to each player’s Web3 wallet. This not only streamlines the gameplay but also demonstrates the great transparency of the platform that inspires confidence since there are no behind-the-scenes actors pulling strings.

An indispensable facet of BTC Battles, which resonates deeply with both traders and crypto enthusiasts, revolves around speed. On Polygon, transaction speeds are notably swifter, offering a distinct advantage to committed players. For adept chartists and individuals endowed with keen instincts for the crypto sphere, the quick 60-second turnaround on each betting round presents a lucrative opportunity, allowing them to amass substantial profits within the brief span of each new round.

Within the game’s framework, two cohorts of players compete for rewards. Firstly, there is the UP faction, staking their bets on the prospect of the $BTC price surging. Conversely, the DOWN faction places their wagers on a downturn in price.

The odds for each round are contingent on the aggregate wager volume and are influenced by the prevailing distribution between the two pools. Should a greater number of participants align with UP, it will tilt the odds favorably for DOWN.

Key Takeaways

Enthusiasts of wagering systems within the Web2 domain will love the straightforwardness and speed offered by Web3 wagering systems like BTC Battles. Players can entrust that their transactions will be seamlessly executed, freeing them to immerse themselves in the unfolding action. This assurance addresses a primary concern shared by gamers on analogous platforms that can fall short in ensuring consistent performance, thereby detracting from the overall gaming experience.

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.