Crypto trading platform Wintermute is building a predictions market with the U.S. election just seven weeks away. The company is tapping Chaos Labs’ Edge Proofs Oracle for the new product called OutcomeMarket, which will begin with betting markets for TRUMP and HARRIS tokens.
Wintermute plans to roll out the betting market next week across multiple networks, including base layer Ethereum ETH
+4.26%
and scaling layers Base and Arbitrum ARB
+4.94%
. Edge, an oracle solution, will provide “tamper-proof” data-feeds.
“Unlike existing prediction markets confined to a single chain, the multi-chain approach allows direct participation from users’ native blockchain ecosystems without the need for cumbersome asset bridging,” the company wrote in a statement. Wintermute also noted that there could be future DeFi integrations, such as offering users yield or leverage on their positions.
Prediction markets, long restricted to the realm of academic economic study, have been having a moment in the crypto industry. Bettors are using platforms like Polymarket to wager on future events, and the crowdfunded data is now regularly cited by mainstream media.
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“There has been significant interest from both centralized and decentralized trading venues to list such prediction market contracts, but no one had developed them in a permissionless manner and without imposing minting or transaction fees,” Evgeny Gaevoy, CEO of Wintermute, said in a statement.
Wintermute is also tapping trading platforms Bebop, WOO, and Backpack as market makers for the two initial ERC-20 compatible token markets and has to expand to more. Unlike so-called PoliFi memecoins like BODEN or TREMP, Wintermute's trading pools would be backed by liquidity that would payout when one side wins.
Editor's note (Sept. 17, 2024): Updates headline to clarify TRUMP and HARRIS are tokens.
Disclaimer: Evgeny Gaevoy, the founder and CEO of Wintermute, previously sat on The Block’s board of directors from April 2023 to early November 2023 and remains a minority shareholder.
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