Polymarket is one of the leading projects in the Prediction Market (decentralized prediction), allowing users to predict the outcomes of future events, the most recent of which attracted the attention of the community is the presidential debate between Donald Trump and Joe Biden and other political and crypto events, etc. In addition, Polymarket was also invested by Vitalik Buterin (Founder of Ethereum) in the series B round. So what is Polymarket? What is special about the project that attracts investment from Vitalik Buterin and will there be an airdrop from the project?
What is Polymarket?
Polymarket is the leading project in building the platform Prediction Market on the Polygon ecosystem. The project allows users to predict events that may happen in the future around the crypto market and life such as politics, pandemic situations, sports, etc.
From here users can make profits or losses based on their predictions (almost like betting) but there is absolutely no interference in the results because of its decentralization, this point users can be quite assured.
Although in 2024, there were proposals to ban derivatives used to “predict outcomes” in event contracts from the Commodity Futures Trading Commission (CFTC), However, Polymarket still thrives on offering “hot” events so users can participate in predictions.
Polymarket’s operating mechanism
Currently, Polymarket uses both AMM and Order Book mechanisms to help users predict outcomes on events on the platform easily.
AMM: Polymarket uses an AMM mechanism to ensure liquidity for event prediction contracts. Liquidity providers can be users, third parties, or Polymarket itself.
Order Book: Polymarket integrates an Order Book so that users can execute orders at their desired price range. This allows traders to directly compare with other traders.
Polymarket has two types of Order Book:
- Limit order: Users set their own desired buy or sell price, and the order is only activated when the market price reaches this limit price.
- Market Order: Allows users to buy or sell immediately at the time of placing an order, given top priority in all orders waiting to be matched.
Polymarket Highlights
Decentralization
Thanks to this point, users’ assets can be guaranteed to be safe, absolutely secure and transparent. Therefore, Polymarket does not directly manage users’ money to ensure the above.
Fast transaction speed and low cost
Built on Polygon, one of the Layer-2s with fast transaction speed and extremely low costs, making the user experience the best.
Diversify Predictive Market Products
Offers a wide range of markets such as Binary, Categorical and Scalar across a wide range of sectors, specifically:
- Binary (binary): Is a True/False prediction market.
- Categorical (classification): Prediction with more than two options.
- Scalar (by region): Predictions are limited by region, country.
Notable information from Polymarket
Currently, Polymarket has attracted over $40 million TVL (Total Value Locked) according to data from DefiLlama on July 1, 2024 and is holding the Top4 position on the Polygon ecosystem along with leading in the Prediction Market segment based on this parameter.
Additionally, trading volume on Polymarket saw a spike last month, rising 87.6% to $111 million.
Polymarket Still Growing Strong Despite CFTC’s Proposed “Ban”
Polymarket was previously investigated by the CFTC in 2021 and forced to shut down its US website after violating Commodity Exchange Act regulations. They had to pay a fine of $1.4 million as part of the settlement.
However, Polymarket still operates overseas and has announced that it has about $202 million in user-generated predictions by 2024 and that the metrics have grown exponentially in the past June.
Investors
The project has raised a total of 74M USD 74M.
It is known that in the Seed round, Polychain Capital is the leading fund and in the latest round (series B) is invested by Founders Fund, one of the famous funds of Silicon Valley, and also invested by Vitalik Buterin.
Instructions for participating in trading on Polymarket
Step 1: Connect your wallet (Coinbase Wallet or Metamask or any wallet in Wallet Login that supports it) to register an account.
Step 2: Deposit funds into the Polymarket platform using USDC, USDT or other assets on the Polygon ecosystem that are supported by the address provided by Polymarket. In addition, users can also deposit funds by purchasing USDC via Visa card, PayPal, etc.
Step 3: After depositing money, users can start “predicting the results” of events in many different fields, for example “predicting the results” of who will become the US President in 2024.
Polymarket will then display the predicted purchase information and the user needs to confirm to buy. If you sell the prediction, the transaction confirmation interface will also appear as shown below.
After confirming a successful purchase or sale, there will be a successful interface as shown below and the transaction will be processed within 20 seconds.
To withdraw money, users just need to transfer USDC from Polygon to exchanges to sell.
summary
Polymarket is a leading project in the field of decentralized Prediction Market built on Polygon that allows users to participate in predicting possible future events in many fields. At the same time, the project has also raised more than 74 million USD from many “big names” in the market and especially has no plans to issue tokens.
That is why many people believe that the project will have an airdrop when it launches, so you can refer to this platform if you want to participate in “predicting the results” and hunt for opportunities to earn airdrops from the project.
However, this article is not investment advice, Virtual Money Blog will not bear any responsibility for your investment. Wishing you success!
