It is known as a simple, easy-to-use, low-cost, unlimited, and predictive market exchange that is friendly to crypto novices.
Written by: LeftOfCenter
For a long time, the traditional centralized prediction market has many problems such as limited transaction volume, high fees, closed access and opacity . The decentralized prediction market provides non-custodial and permissionless solutions, allowing the market to see the hope that the pain points can be solved . But the other side of the coin is that the decentralized prediction market has high barriers to use and poor user experience , and it has not been widely adopted by ordinary users.
The Catnip prediction market trading platform, born out of the decentralized autonomous organization AugurDAO, hopes to improve the trading experience of the decentralized prediction market and provide a user interface comparable to the experience of the traditional prediction market, thereby introducing new encrypted users to participate in the decentralized prediction market and become A bridge connecting non-encrypted natives into DeFi .
What is Catnip?
Catnip Exchange is a simple and easy-to-use liquidity prediction market. The main goal is to eliminate the friction experience in the prediction market.
Catnip means catnip
Specifically, Catnip Exchange is a project in AugurDAO. The latter is based on a decentralized autonomous community organization on top of Aragon. It is committed to promoting the development of an open prediction market and providing Augur with an order book and AMM mechanism prediction market trading platform .
In other words, Catnip Exchange, as a project in the Augur ecosystem of the decentralized prediction market, mainly focuses on the transaction layer to provide users with a frictionless and smooth transaction experience.
According to the official introduction, the main features of Catnip can be summarized by simple and easy to use, low cost, unlimited, and user experience friendly to crypto novices .
Uniswap-like user experience
Catnip Exchange provides a prediction market trading interface similar to Uniswap , which can be traded with just two clicks, which should be very familiar to old DeFi users.
If you are a new user encryption market, you may still feel the presence of the threshold, such as if never used MetaMask or Ethereum the user, may feel a little complicated. However, the Catnip Exchange team stated that it is working hard to improve the experience of novices, by providing a decentralized version of the centralized prediction market, allowing non-encrypted natives to participate in the DeFi world.
Catnip Exchange initially supported only one market, the recent popular 2020 US presidential election , to focus liquidity on the most predictable events in the world. At present, the market forecast in the pool of money Balancer’s already has over 300,000 of working capital.
According to the current data on the platform, the price of the token “YES” for betting on Trump’s win is 0.36 DAI/piece. If the prediction is correct, each “YES” token can get a gain of $0.62, and the odds are 1.66 , Betting that the price of the “NO” token that Trump loses is 0.65DAI/piece. If the prediction is correct, each “NO” token can get a return of 0.35 USD, and the odds are 1.55 for 1 to lose . The odds of NO are much lower than YES, which means that most people currently choose to bet on Trump’s defeat.
High liquidity and low transaction fees
From the user’s point of view, a smooth trading experience can be achieved in two clicks to participate in prediction market transactions, which is as simple as trading tokens on Uniswap.
But from the perspective of the process behind it, Catnip Exchange takes DeFi’s composability to the extreme .
As a project emerging from the decentralized organization AugurDAO, Catnip Exchange uses Foundry.finance to tokenize the share of the forecast results, then put these tokens into the Balancer AMM fund pool, and then create a custom user interface that allows users Trade through this pool of funds. Essentially, all these processes are packaged in a custom user interface.
According to the official introduction, such processing makes transaction fees much cheaper. Compared with Augur’s native UI, Catnip Exchange’s transaction fees are 10 times cheaper, which is only about 50% of Balancer’s native UI transaction fees. In addition, Catnip Exchange does not incur clearing fees, and compared with competing products such as Omen and Polymarket, the transaction fees are only half of the latter.
However, after a test comparison on the chain, it is found that the cost of trading on Catnip does not have much advantage over the native UI of Augur. Taking the Dai and Dai trading pair as an example, after the transaction, 100 Dais become 98.94 Dais , And did not achieve the effect of the slogan that the transaction fee is 10 times cheaper than Augur’s native UI.
No transaction limit
Just like other predictor markets on Augur, Catnip has no restrictions on trading volume. And a centralized prediction market like PredictIt will limit the transaction volume of each prediction result, the maximum amount is 850 US dollars.
More interestingly, the launch of Catnip means that decentralized prediction market functional stratification is feasible.
Among them, Augur, as the result judgment layer, is responsible for making final judgments on the results of predicted events , so that the token holders who bet on different predicted results can settle the income according to the results of the expiration date event, while Catnip belongs to the transaction layer and is responsible for Provide end users with an easy-to-use trading experience. Catnip guarantees a simple and easy-to-use front-end experience while keeping transactions non-custodial. The back-end is provided by the decentralized market Augur, which makes decentralized betting without permission and accessible.
Source link: limitlessmarkets.substack.com
