Explore Polymarket: Bet on Future Event Outcomes

Understanding Polymarket: Betting on Future Outcomes

Polymarket is one of the largest decentralized forecast marketplaces where people can bet on different event outcomes. The marketplace covers a wide range of events that are related to cryptocurrency, entertainment, politics, pop culture, and more. Polymarket is quite popular in the crypto space as the participants are allowed to make bets on any events and take profit from their predictions. In the article we delve into the world of polymarket, exploring its working, features, examples, and much more.

What is Polymarket?

Polymarket is one of the biggest decentralized forecast platforms operating works on the Ethereum blockchain through a Layer-2 scaling solution called Polygon. Founded by US entrepreneur and crypto investor Shayne Coplan, Polymarket raised $4 million in seed funding from notable investors like Polychain and ParaFi Capital. 

Source: Polymarket

Moreover, users can attach their crypto wallets without requiring to deposit funds on the platform or undergo KYC verification.

Polymarket allows users to speculate on the outcomes of various events using cryptocurrency. Participants purchase outcome shares for under $1, which can be traded at any time. These shares become worth $1 if the predicted outcome is correct; otherwise, they become worthless. For example, users can bet on events like presidential elections, celebrity activities, or significant political announcements.

How Polymarket Works

The platform features a user-friendly dashboard where users can view all markets and filter them by category, liquidity, status, etc. To get started, users need to:

1. The first process is to Sign Up. Register with an email address, after which Polymarket creates an Ethereum-based wallet. The user holds the private keys, ensuring full control over their funds.

2. After signing up, users have to deposit Funds. Deposit USDC into the Polymarket wallet. This stablecoin simplifies the valuation of events and payouts in USD terms. Users can acquire USDC through centralized exchanges like Coinbase or Binance or through decentralized exchanges (DEX).

3. Then Choose a market to speculate on. Most markets offer binary outcomes (yes/no), but some are categorical (multiple options) or scalar (value within a range). Users can choose to find markets that match their interests.

4. Buy outcome shares with USDC. Each share is priced between $0.01 and $1.00, reflecting the aggregated probability of expected outcomes. A lower price indicates a less likely outcome.

5. Shares can be sold anytime before the market resolves without incurring fees from Polymarket. Upon resolution, shares are worth either $1 or $0, depending on the outcome.

6. Markets close when the outcome is unambiguously determined. Correct predictions allow users to cash out shares at $1.00 each. If outcomes are ambiguous, Polymarket’s Market Integrity Committee (MIC) determines the result.

Example of  Polymarket

An example of a Polymarket bet could be who will be the presidential election winner in 2024. Users buying shares in the "Yes" outcome stand to gain significantly if the prediction is correct.

In the above example, Political betting markets have a massive $263.5 Million on betting on the result of the next U.S presidential election on November 4th.

Source: X

People's favorite is Donald Trump has the highest probability of winning at 70% while Joe Biden has a 19% chance.

Second, 7% of respondents support Vice President Kamala Harris; third, 2% of respondents support former First Lady Michelle Obama. 

Conclusion

Polymarket is the cutting-edge forecast marketplace utilizing blockchain technology to bet on future outcomes. The platform uses smart contracts and it is on the Ethereum blockchain which makes it safe, secure, and fast. It is a new and enjoyable way to make money through future predictions and it welcomes everyone to experience it.

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