Markets

General definitions

From prode.eth, we define a market as an event or group of events or questions related to a specific topic. This topic could be in different categories such as sports, politics, price markets, etc. In the first version of the protocol, we will focus on the curation of markets related to sport events, but in the future more categories will be added. A market example could be all the results of the matches in the Premier League Day Match #3, or in how many matches a team will win the NBA Finals 2022, and all other questions that may occur.

How we know the answer of all these events?, we don't. That's why the community and users of the protocol will provide the answers. The protocol it's built upon reality.eth, an on-chain protocol where someone can ask a question and through economic incentives the users are guided to provide the right answer. In the reality.eth - Q&A section you will find more information about how it works.

When a market it's already created, the users can make their bets paying a fixed amount, defined when the market was created by its creator. When doing the bet, the user will have to provide their predictions of the results of the different events in the market. For each right answer the bettor will earn a point. At the end of the market, when all the events have finished, a ranking will be calculated and the prizes could be claimed if you end up in the positions with prizes. More info in the Bets section.

The market creator has set an account to receive the market fees, this account could be its own account or a third party account. The fee paid by each bet to the market manager account, will be defined at the market creation. More info below in the sections manager address and manager fee.

The markets have three statuses: active, pending and closed. A market it's in active status when anyone can bet on the market. Pending status it's when the events in the market are ongoing and the market it's waiting to receive all the results of the events. The last status it's closed, and it's a market that already has all the event results and the bettors can claim their prizes.

Market Parameters

In this section we will detail each of the parameters that must be completed to create a market. These parameters can be used by the bettors to filter your market and choose the most convenient.

Market Name

The name of the market that you want to create. This name has to belong unambiguously to the market that it refers to, e.g: NBA Finals 2022 should be used instead of NBA Finals where it isn't clear which year it’s referring to.

The name it’s very important because it could be used in the questions templates to make the events explicit. See more about this in Questions/events.

Questions/events

These are the different events that together create a market. Must be written in english as questions and has to be written in a way that there are no doubts about the result of the event and the response isn’t invalid (or at least, at the moment of creating the market). To facilitate the questions creation we provide some templates to be used.

For example:

Which was the result between Manchester United and Liverpool in the #33 day match of the Premier League 2022?. This is a question that it 's specific and could be answered properly. Instead if the question was: Which team won the match between Manchester United and Liverpool? it’s a question that could have multiple answers, then it’s invalid.

Betting Deadline

It’s the last time where the market can accept bets.This time has to be earlier or equal to the beginning of the first event of the market.

Bet Price

It’s the fixed amount that all the bettors have to pay to have a participation in the pool of the market. All the bets are stored in the market pool until the prize distribution, where the pool is distributed to the winners and the manager of the market.

Creators Address

It’s the address that will receive the management fee of each bet and will receive royalties for the market NFTs trading. This parameter can be set to any address. The Prode.eth team will be pleased if you as a market creator set this address to some public good projects. In clr.fund you can found different public goods projects. We have develop a bridge to send funds (xDAI token) to Ubiburner from gnosis chain to support UBI project, we encourage users who want to support UBI to set the address 0x64ab34d8cb33F8b8bB3D4b38426896297a3e7f81 as the manager address or any other address that support public good projects.

Manager Fee

This fee is the percentage of the bet price that will be sent to the address that the creator has set on each of the bets that are made in the market. Let’s put this in numbers:

If the bet price of a market it’s 10 xDAI and the management fee it’s 5%, then: Then 0.5 xDAI will be held to be sent to the creator address, 0.15 xDAI will be held to be sent to the protocol as a fee and the rest (9.35 xDAI) will be in the pool prize to be distributed as prize. More info in the Fees section.

The funds distribution to the manager will be made when the manager (or other user) create the ranking of the markets, and this operation can be only made after all the events has their answers accepted.

Prize distribution

With this parameter (an array) you can set how the price of the market will be distributed to the bettors. You can choose a ranking of 1, 2, 3 or more prizes with some prize distribution according to the position in the ranking, or all the pool goes to the first position, or whatever you want. Of course, all the prizes has to sum 100%.