Dehype | Prediction markets on Solana
  • 👋Introduction
  • How It Works
    • 💡Market Creation & Event Tokenization
    • ✨Trading Outcome Tokens
    • 📑Market Settlement
    • 🚀Liquidity Pump
    • 🪙Memecoin Conversion
    • 🔠Example Scenario
  • Technical Implementation
    • 📪Smart Contracts
  • Tokenomics
    • 🛠️Getting set up
      • 📝Setting permissions
      • 🧑Inviting Members
  • DEHYPE FOR
    • 🎨Investor
    • 🖥️User
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  1. How It Works

Example Scenario

Let's walk through a complete example:

  1. A market is created for the question: "Will Bitcoin reach $100,000 by the end of 2025?"

  2. Two outcome tokens are generated: "BTC100K" and "BTCUNDER100K".

  3. Users trade these tokens leading up to the end of 2025, with prices fluctuating based on Bitcoin's performance and market sentiment.

  4. On December 31, 2025, Bitcoin's price is $120,000.

  5. The oracle confirms this outcome, triggering the settlement process.

  6. All liquidity from "BTCUNDER100K" is transferred to "BTC100K".

  7. "BTC100K" is converted into a memecoin. The community votes to name it "MOONCOIN".

  8. Holders of "MOONCOIN" can now trade it, use it for governance, or hold it as a trophy of their successful prediction.

This process combines the thrill of prediction markets with the potential for creating lasting value through memecoins, incentivizing both accurate predictions and long-term community engagement.

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Last updated 8 months ago

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