Polymarket and BET are two cryptocurrency prediction markets which have garnered a number of consideration. Each leverage blockchain expertise to supply distinctive options and person experiences. Polymarket has attracted greater than $750 million in bets on this 12 months's US elections, whereas newcomer BET has garnered about $22 million since launching this month.
How does Polymarket and BET work?
Polymarket runs on the Ethereum blockchain and makes use of Polygon as a layer-2 scaling resolution to reinforce scalability and scale back transaction prices. This setup permits Polymarket to effectively course of massive volumes of transactions with out congesting the Ethereum community or incurring costly gasoline charges.
The platform primarily options binary final result markets, the place customers can wager on the “sure” or “no” final result of assorted occasions by way of a steady double public sale mannequin. Alternatively, they will create markets on a number of outcomes, equivalent to betting on which phrases will probably be utilized in a political speech. This mannequin ensures dynamic worth discovery, with costs representing the chance of an occasion occurring.
Notably, Polymarket helps self-custodial wallets slightly than requiring customers to carry native platform tokens, offering customers with better safety and management over their funds. The platform additionally incentivizes liquidity and participation by way of quite a lot of reward mechanisms, together with liquidity supplier rewards and market-specific incentives.
BET, however, is a Solana-based prediction market platform launched by Drift Protocol. It leverages Solana's excessive transaction throughput and low charges, making it a gorgeous choice for decentralized functions. BET permits customers to take part in event-based predictions by buying YES or NO shares on the end result of real-world occasions. The platform additionally provides structured betting, permitting customers to implement advanced buying and selling methods.
Distinguishing between asset-backed and betting mechanisms
Polymarket's public sale system allows dynamic worth discovery by representing the chance of an occasion occurring. For instance, if an “occurring” inventory for an occasion is buying and selling at $0.72, it signifies a 72% chance of that final result. Customers can commerce positions at any time earlier than the market settles, permitting for better flexibility and liquidity. Polymarket requires customers to deposit USDC into their wallets, however the platform doesn’t require customers to carry the native token, simplifying the person expertise.
In distinction, BET helps over 30 cryptocurrencies as collateral, together with USDC and SOL, offering better flexibility to customers. BET additionally integrates yield technology by way of Drift's borrowing/lending platform, permitting customers to earn curiosity on their collateral whereas ready for the end result of an occasion. This performance, mixed with structured bets that enable customers to execute advanced buying and selling methods, makes BET stand out in prediction markets.
Polymarket focuses on simplicity and person accessibility by using USDC as the first forex and eliminating the necessity for a local token. This method lowers the barrier to entry and enhances person safety by way of self-custodial wallets. Polymarket encourages liquidity and participation by way of quite a lot of reward mechanisms, together with liquidity supplier rewards and market-specific incentives, fostering a wholesome buying and selling surroundings.
In distinction, BET provides a extra advanced monetary ecosystem with a number of collateral choices and yield technology capabilities. The platform's FUEL rewards program additional encourages person engagement by distributing tokens primarily based on buying and selling quantity. Tokens could be redeemed inside the Drift and Solana ecosystems. BET's monetary construction and excessive transaction throughput on Solana present a quick and environment friendly buying and selling expertise, engaging to customers looking for flexibility and extra monetary incentives.
Polymarket and BET serve completely different person wants: Polymarket focuses on simplicity and decentralized settlement, whereas BET provides flexibility and revenue alternatives by way of various collateral choices and integration with Drift's platform.
A fixing software for prediction markets
Polymarket and BET make use of completely different decision mechanisms to find out the end result of their prediction markets, reflecting their completely different approaches to decentralization and governance.
Polymarket makes use of UMA's Optimistic Oracle, a decentralized and trustless system, to settle market outcomes. This mechanism integrates real-world information into good contracts which can be important to figuring out the outcomes of assorted bets. As soon as a market is created, a settlement request is routinely despatched to the Optimistic Oracle.
Proposers within the UMA system submit solutions to this request with ensures. If there aren’t any objections to the proposed reply, it’s accepted after a typical two-hour objection interval. If there are objections, the system resets the query and points a brand new request to make sure minor disagreements don’t forestall decision. If the dispute lingers, it’s escalated to UMA's Knowledge Validation Mechanism (DVM), the place UMA token holders vote for the proper final result and are usually resolved inside 48-72 hours. This course of demonstrates Polymarket's dedication to a community-driven and clear decision system.
BET settles markets by way of a structured course of ruled by a Safety Council and multisigs elected underneath Realm Governance. On the designated decision time, the Safety Council updates the oracle with a binary final result (0 or 1) representing the end result of the occasion. After this replace, the market is ready to run out, after which it goes into “reduce-only” mode, stopping new positions from being opened or current positions from being elevated.
The market is settled primarily based on the oracle's final result and customers can settle their positions on the decided settlement worth. Within the occasion of a shortfall, the place the market doesn’t have sufficient funds to cowl all positions, the shortfall is mirrored within the settlement worth and will end in decreased payouts even when the decision is ready to 1. This structured method ensures equity and transparency with a mechanism to deal with potential shortfalls.
Thus, Polymarket emphasizes decentralization and group engagement by way of UMA oracles, whereas BET focuses on structured governance and safety council oversight to make sure correct and truthful market outcomes.
Person incentives and rewards system
Polymarket encourages person engagement by way of quite a lot of reward mechanisms designed to extend liquidity and participation. One of many predominant incentives is the Liquidity Supplier Reward Program, which inspires customers to put resting restrict orders close to the market midpoint. This system goals to create a balanced and liquid market by rewarding customers weekly for sustaining wholesome market situations.
Polymarket commonly hosts public contests primarily based on P&L and buying and selling quantity to additional incentivize person exercise. These incentives, mixed with the platform's use of USDC and self-custodial wallets, make Polymarket a gorgeous alternative for customers on the lookout for a simple and safe buying and selling expertise.
BET provides varied incentives by way of its FUEL rewards program, the place customers are rewarded with FUEL tokens primarily based on buying and selling quantity, which could be redeemed for varied rewards inside the Drift and Solana ecosystems. BET additionally provides yield technology alternatives, permitting customers to earn curiosity on their collateral whereas ready for the end result of an occasion. This characteristic, together with the platform's help for over 30 cryptocurrencies as collateral, offers customers nice flexibility and potential monetary good points. BET's structured wager characteristic additional will increase its attraction by permitting customers to execute advanced buying and selling methods, equivalent to taking an extended place in a prediction market whereas shorting Bitcoin.
Polymarket vs BET Overview
Polymarket leverages Polygon to reinforce scalability and scale back transaction prices. This setup permits the platform to course of massive volumes of transactions with out congesting the Ethereum community or charging exorbitant gasoline charges. Dedicated to decentralization and community-driven governance, Polymarket makes use of UMA's Optimistic Oracle for market settlement. This oracle system ensures truthful and clear market outcomes by integrating real-world information into good contracts and enabling group voting in case of disputes.
BET leverages Solana's excessive throughput and low charges to allow a quick and environment friendly platform for decentralized functions. The decision course of entails a Safety Council, an elected multi-sig underneath Realm Governance, updating the end result of occasions to an oracle. This structured method ensures correct and truthful market decision and has mechanisms in place to deal with potential funding shortfalls.
Each platforms provide various market alternatives, with Polymarket supporting a spread of matters together with politics, sports activities and leisure. BET is initially centered on political occasions however plans to increase to sports activities and cultural occasions to broaden its market attain. These variations spotlight the distinctive strengths of the platforms: Polymarket emphasizes simplicity, safety and decentralized decision, whereas BET provides flexibility, income alternatives and a structured governance mannequin. Customers can select between these platforms primarily based on their market range, monetary incentives and technical infrastructure preferences.
