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Prediction Market 2.0 Arrived

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by Julia Sakovich · 5 min read
Prediction Market 2.0 Arrived
Photo: Meridian Network / Medium

PreSaga is set to become the Uniswap of prediction markets, disrupting the space and bringing users a new and better experience.

With 24/7 news cycles streaming uninterrupted coverage of a global pandemic, widespread economic insecurity, political violence, and massive cultural clashes, everything feels uncertain. But for one cryptocurrency niche, uncertainty is the key to success.

Prediction markets are just what they sound like; they’re digital marketplaces where users can bet their cryptocurrency to make predictions on uncertain future events. The immutable nature of blockchain technology lends itself well to this use, making cheating or gaming the system nearly impossible. And now, with the advent of decentralized finance (DeFi), users can make their predictions with anonymity and without the need to trust a centralized entity with their money.

The prediction market space is currently ruled by first-mover projects, but while these early projects offer great utility, they come with many of the problems inherent to first-movers in any space.

The First-Mover Problem

The current selection of DeFi prediction markets suffer from a variety of issues. Many have confusing or nonexistent user interface (UI) designs. Others are simply overwhelming for the average person to use. Still more use outdated trading models, leading to problems with liquidity.

Overall, the biggest barrier to the widespread adoption of prediction market decentralized applications (DApps) is the experience. Users want easy, fast, and safe when they’re betting their hard-earned cryptocurrencies, and if their experience with a prediction market doesn’t include all three of these descriptions, they’re less likely to return. In short, betting should feel like fun, not work.

These issues hold back the potentially monumental growth of DeFi prediction markets, but as we’re about to see, they’re far from insurmountable.

It’s time to take a look at prediction market 2.0.

Enter PreSaga

Meridian Network is a burgeoning ecosystem of interconnected DApps developed on the Ethereum blockchain and powered by the LOCK token. Meridian’s DApps are built with a design philosophy that revolves around user safety, utility, and good UI design. As a DAO-governed project, Meridian’s user community chooses what DApps to develop, guided by input from experts on the development team.

Meridian’s first community-chosen DApp is PreSaga, an AMM (automated market maker)-based prediction market that is now available for public beta testing on the Rinkeby testnet. During development, Meridian’s development team and community identified weaknesses of current prediction markets, addressing each in turn.

This means that PreSaga is easy to use, has clean and purposeful UI design, and is powered by AMM technology rather than older order book systems. Placing your bets on world events in DeFi has never been easier.

In other words, PreSaga is set to become the Uniswap of prediction markets, disrupting the space and bringing users a new and better experience.

How PreSaga Works

Getting started with PreSaga is easy. Any user can create a market that they and others can bet on, establish the resolution source, and get going.

The price of a share in a given market is determined by the AMM technology that facilitates trades within PreSaga. For context, an AMM is a contract on the blockchain that uses a mathematical model to adjust prices according to supply and demand. This is what drives price changes; the more people buy an outcome in a market, the more its price will rise, while more sellers will cause the price to drop.

There are a few different ways in which users can profit from using PreSaga. Users can trade shares back at a better price to make a profit. After a market closes, an outcome will be assigned as the winner, and users can redeem winning shares for 1 LOCK each—this is how you profit from accurate predictions. Users can also provide liquidity, which is an advanced feature for more seasoned users that can earn them fees for every buy or sell transaction within a market.

Share prices are set between 0 LOCK and 1 LOCK. Users redeem their shares at 1 LOCK per share. To give an example of this concept in action, if a user buys 100 shares at an average of 0.63 LOCK each and wins, they will redeem these 100 shares for 100 LOCK in total. This translates to a profit of 0.37 LOCK per share. It’s easy!

Now that you know a little more about PreSaga, let’s explore how you can test it out, yourself.

How You Can Get Involved

Although PreSaga has been audited by Hacken Cybersecurity Services, thorough safety testing is essential for any DApp. If you’d like to get involved in readying PreSaga for launch on the Ethereum main net, here’s what you can do.

Simply head to Meridian’s PreSaga web page and select “Faucet” at the top. If using Metamask or another similar wallet, make sure it is set to the Rinkeby testnet before you connect. On the faucet page, enter your wallet’s public address and select “Fund Me.”

Now you’ve got a supply of Meridian’s test token, LOCKr. You’re ready to go! Select “PreSaga” in the top left and experience the next generation of DeFi prediction markets.

Altcoin News, Blockchain News, Cryptocurrency news, News
Julia Sakovich
Editor-in-Chief Julia Sakovich

Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.

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