One For The Degens | Web3 Daily
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In case you’ve been dwelling underneath a rock, individuals are going loopy on Polymarket proper now.
(Significantly! Take a look at the graph for Complete Worth Locked 👆 which is usually an indicator of the extent of belief and utilization of a DeFi platform).
Polymarket lets anybody (outdoors of its restricted areas, of which the US is one) wager on the result of just about something underneath the solar.
For instance, as of this writing there’s been over $411M bet on the results of the US election alone!
Polymarket is exclusive in that it doesn’t have a market maker which is what ‘regular’ betting platforms have.
As an alternative, as a result of it’s decentralized, it makes use of an automatic market maker – i.e. an algorithmic system to determine on pricing for every outcome, primarily based on the sum of money wager on both sides by actual punters.
And in just a few weeks they’re about to launch one thing even cooler/crazier:
Leveraged bets and derivatives-based bets.
With a leveraged wager, as a substitute betting on the result of X with your personal cash, it will imply you’ll be able to wager on an outcomes and get a number of instances the return (or a number of instances the loss) by solely placing a small quantity upfront.
For instance, you may put $10 upfront however do a 5x leveraged wager, returning you with $50 in the event you’re profitable – however requiring you to pay an extra $40 in the event you lose the wager.
Derivatives-based bets imply you’ll be able to wager on extra than simply the outcome.
For instance, betting on an election winner could be a ‘base market’ wager; in comparison with betting on the margin of victory (a spinoff wager).
It’s no simple job!
However, the absolutely onchain derivatives platform, D8X, is working with Polymarket to convey it to market.
Sounds thrilling for degens, and extremely harmful for skilled and non-professional gamblers alike.
The excellent news: no matter what Twitter says, you don’t have to partake in Polymarket.
