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Can the addition of predictive market elements become a breakthrough for the “Swap fever” to break out again? PlotX’s attempts may give us the answer.
Written by: Spike Chen
On September 24, Ethereum founder Vitalik Buterin tweeted that the prediction market is the most undervalued type of Ethereum DApp. Both Omen and Augur v2 are currently running prediction market DApps, with active markets and good liquidity. Two days later, Vitalik continued to tweet, still about the prediction market. For a time, the prediction market attracted widespread attention from the currency circle.
After Swap has been hot for more than half a year, predict whether the market has the potential to take over Swap and continue the boom of Defi. As a decentralized prediction market, PlotX that I will introduce today is more thorough and farther than Omen and Augur in terms of decentralization and community drive.
How should the weak DeFi choose a new direction to break through?
In June of this year, Compound launched liquid mining, and the dazzling performance of COMP exploding 3 times in 3 days directly detonated the DeFi market. Then YAM, Curve, Sushi, KIMCHI, PEARL and many other DeFis have also taken turns to gain market popularity by launching asset liquidity mining. However, as the YAM, Sushi and other projects have successively encountered various problems that caused the market to plummet, the DeFi market has gradually weakened. Fortunately, the long-awaited DEX top seed Uniswap issued and airdropped its governance token, UNI, to regain the popularity of the DeFi market.
According to Debank data, the total lock-up volume on ETH increased from US$1.975 billion on June 30 to US$14.720 billion on September 27, an average monthly increase of 215%.
Although the total amount of DeFi locked up has been increasing, DeFi urgently needs innovative and landable applications. What kind of innovation will the next DeFi detonating market in the future bring, and how will it solve the real market demand? Will the recent hot spots led by Compound and Uniswap projects continue to reignite the market? Or will there be new products? If so, where will the next era of DeFi track be?
Swap DEX+ prediction market application PlotX may become the next DeFi hotspot.
What is PlotX?
PlotX is a financial platform that combines predictable protocols and decentralized transactions, which is equivalent to Uniswap with predictive protocol services. PlotX provides a fast, simple and high-return forecast agreement tool, which reduces the barriers to user participation and brings a very interesting user experience. Users can use PLOT tokens on the PlotX platform to predict the future trends of digital assets in the hourly, daily and weekly markets. In addition to providing users with a stable income forecast protocol service, if the forecast result is consistent with the market, additional governance tokens PLOT can be obtained. If the forecast is wrong, the property will not be confiscated.
Go to the PlotX official website (plotx.io) and click “Start” to connect to the decentralized Ethereum wallet. Users can come to the current Alpha version of PlotX and can view the three markets on time, daily and weekly . The setting of these three time periods allows investors to choose their most satisfactory market duration, which is convenient for controlling the lock-up time of funds.
At the market cycle switch, investors can see the problems of each market at any time, for example, the price of BTC will reach a certain price in one hour/day/week.
Users can also see the key indicators of a market under the market issues, such as how many ethers are pledged in a market, the number of bets, market start time, market end time, etc. Before making predictions, users can refer to the detailed charts given by each market for application technical analysis.
After you decide on the prediction result, the user can click the “Forecast” button to buy the prediction bit. Currently in the Alpha version of PlotX, only KETH can be used to purchase prediction bits.
The platform also allows users to select leverage factors using sliders. This feature allows you to place bets using the most acceptable risk factor. 1X means 20%, 5X means all-in. Therefore, if the user happens to lose after choosing 2X after betting 0.1ETH, the user will get back 0.06ETH after the market closes.
After successfully clicking the “Buy” option to make a prediction, the user can go to the leaderboard section to view all the previous and current market results, and can also access the desired leaderboard by filtering the market and time frame.
After the transaction is over, the market will automatically settle and distribute rewards to the winners who predict correctly.
Currently, the alpha version of PlotX only provides BTC/USDT trading pairs, and the community will decide whether to add ETH/USDT, LINK/USDT and other trading pairs, as well as other types of trading pairs.
Solid technical team
The team comes from the Ethereum development ecology, Nexus Mutual, Cognizant, GovBlocks, BORN, etc., has many years of blockchain technology development experience, and has been deeply involved in the financial field for many years, knowing the real needs of decentralized finance.
Ish Goel among the founding members of PlotX was the CTO of Nexus Mutual, and Nitika Goel was the author of the ERC1132 lockable token standard on Ethereum. Ish Goel and Nitika Goel joined the Ethereum ecosystem in 2016 and won the 2017 London Blockchain Week hackathon together. Ish Goel and Nitika Goel are also core technology developers of Nexus Mutual. Nexus Mutual mainly provides insurance services for the DeFi field, and provides community mutual assistance insurance against the risk of smart contract vulnerabilities that may appear in the DeFi agreement. Up to now, the locked amount is up to 165 million US dollars.
Where does the PlotX front come from?
Expanded fission marketing. The PlotX team is deeply influenced by the concept of decentralization and is not limited to a single organization or group. PlotX mainly motivates users to promote independently through recommendation rewards, such as decentralized fission. In this way, a wide range of user groups can be reached, which meets the diversity of users and is more conducive to the multi-point diffusion of users.
The comprehensive oracle machine provides users with more investment options and timely price settlement. PlotX currently uses Chainlink and Provable two oracle mechanisms. Its purpose is to provide users with more choices for the odds of the prediction agreement to meet the needs of users with different views; the market settlement uses Provable’s Binance as the settlement price, but it is possible It will be controlled by unilateral market prices, and the community is still discussing whether to use ChainLink to integrate multi-party prices for the market stage. In addition, PlotX uses Chainlink, Oracle and Provable as solution providers. The two parties are relatively independent and have no competitive relationship. This also means that PlotX will be more decentralized when applying oracles.
Strong professionalism: predict the immediacy of protocol operation. PlotX is more flexible for users, and can be flexibly deployed at intervals of 1 hour, 1 day and 1 week, which can better reduce unpredictable risks, realize short-term risk arbitrage, and be more professional.
Linked liquidity mining stimulates the market and gathers the wisdom of the masses. Users can use PLOT to participate in mortgage mining to obtain more income, reduce the circulation in the token market, and further expand the value of tokens; at the same time, they are also gathering the wisdom of users to collect prediction results, even if the user’s prediction is wrong. Loss, gather the wisdom of the people to guide the market forecast agreement. PlotX will soon start liquid mining at the same time as it logs on to DEX to encourage more users to participate in the use of decentralized prediction market protocols.
PlotX is a comprehensive tool to meet the needs of different users. AMM mining provides PLOT incentives to market creators; through viral diffusion marketing, it promotes user mining and encourages users to spread; PLOT holders can also participate in PlotX governance; PLOT tokens are used to link many financial tools to satisfy more User groups.
So what is the difference between PlotX and similar forecasting agreement products such as Augur, Synthetix and HXRO?
PlotX: User experience, risk control, incentives and comprehensive comparative advantages
The outstanding advantages of PlotX are mainly summarized as follows:
The user experience is more free. PlotX mainly provides users with a more flexible and professional platform to match the needs of users in multiple scenarios. For example, users can independently make market and system creation, and support the use of ETH and PLOT as handling fees (with a 50% discount). And when the user consensus reaches a certain level, the governance token PLOT can be used to vote and participate in determining the future development direction of the project.
Risk control is more stringent. First, adjust the direction of forecasting by absorbing market information; second, control the risks of users through multiple choices and reduce leverage; third, the ownership of assets is in the hands of users; fourth, user transactions The shortest period can be set to 1 hour, 1 day, and one week to reduce the risk caused by violent market fluctuations; fifth, on-chain transactions are more transparent; sixth, there is no counterparty risk for custody assets.
The incentives are more in line with the market. In the early stage, more users were encouraged to participate in the form of airdrops, mortgage mining, and recommended mining. While stimulating the market, it combines the form of mortgage mining to reduce early selling pressure and promote the stable and long-term development of PlotX.
Comprehensive financial platform. Taking prediction as the pioneer, we will collaborate with more types of DeFi products to meet the needs of more users and create a comprehensive financial tool platform.
PlotX platform currently only predictable trading pairs are BTC/USDT, and the number is small. The PlotX team said: PlotX’s first goal is to reduce risks and stabilize returns. In the future, it will continue to be added according to the needs of the community and the hot spots in the market.
At the same time, the PlotX team also revealed the progress of some technical cooperation: One of the main driving factors for building PlotX is to simplify the DeFi experience, and the user experience can be said to be the biggest challenge for the expansion of the encrypted asset industry. Therefore, PlotX will work with the team of Deep Work Studio to solve this problem, and thoroughly reform the existing UX/UI to achieve the goal of making it easy for Xiaobai to use DeFi products.
How does the prediction market agreement detonate the market?
According to data from Dappreview on September 27, the current mainstream DeFi is lending, stablecoins, Swap DEX and financial derivatives, of which the largest is borrowing, accounting for 64.4% of the market value. The payment and forecasting market is relatively small at present, and its market share is small compared to its projects.
Up to this stage, loans, stablecoins, Swap DEX, etc. have already exploded the market this year. Will there be new applications or scenarios that can meet market demand? The payment or prediction protocol in the DeFi field, as a track that has not yet exploded in the public DeFi, will it be a new innovative attitude in the future? Although DeFi has stagnated, the volume of locked positions continues to grow. The reason behind this may be that the demand for decentralized transactions has been strong. In this situation, how can we improve our existing products? Swap DEX+ forecast agreement/payment may be a better form. This direction has great potential. Forecast agreement application is imminent and ready to be launched:
- The prediction market agreement may become a hot spot for DeFi in the future. The forecast market agreement is an important direction for users as an investment reference, directly providing direction/strategic guidance, and a mature forecast risk control plan is also necessary;
- Augur has not yet completed its mission to detonate the prediction market agreement. Augur was once optimistic, but because of its product’s centralized operation model and opaque user funds, it is difficult for the forecast agreement market to break out, so the forecast agreement market share is low;
- It is predicted that the agreement aggregation Swap DEX may be the direction of innovation. The mainstream DeFi track has exploded, and the prediction protocol category can learn from hot track such as Swap DEX or lending to further upgrade, integrate market demand and forecast protocol services, and improve the Swap DEX project.
The payment category has formed a solid barrier and needs to be promoted by technological iteration and the globalization of cryptocurrencies. The landing use scenarios of payment projects mainly rely on the globalization of the overall cryptocurrency. At the same time, there is a current uncompetitive strong opponent in this field-Bitcoin. Bitcoin’s stability and global consensus are relatively the highest in the entire field of encrypted assets. Therefore, current DeFi payment projects still need to continuously optimize the technical system. For example, the Lightning Network is to accelerate the transfer of BTC.
Prediction market: a new tipping point for the future DeFi market
For the six major sectors of the DeFi sector: lending, stablecoins, Swap DEX, financial derivatives, prediction market agreements, DEX agreements, etc., most of them have already exploded. The payment category is expected to be difficult to break through the technical bottleneck in the short term. Instead, it is predicted that the market agreement + Swap DEX is likely to stand on the shoulders of Swap and become the next hot spot.
The PlotX team is composed of veterans in the blockchain and traditional industries, and is well aware of the business model of financial technology and DeFi. At the same time, PlotX will make more iterations, innovations, supplements and integrations based on the technologies of Swap DEX and Argur. While PlotX empowers Swap DEX with more innovations, it is also writing the next chapter of the forecast agreement-for Users provide safer, more convenient, risk-controllable and predictable financial tools with stable returns.
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