PancakeSwap announced the Beta Phase of their new Prediction market tool is now live. Prediction of market prices going up or down is a market that has yet to be fully realized. PancakeSwap Prediction seems to be making strides forward into this sector, offering users even more versatile trading options.
PancakeSwap Prediction Market
The prediction market refers to predicting the direction of the price of assets at a given time or during a locked period. When correct predictions are made, users get rewarded after the close of that specific prediction phase, and lose funds on a bad call.
The concept behind the PancakeSwap Prediction tool is simple: predict the price of BNB/USDT and whether it is going to close UP (gain) or DOWN (lose) when the session is live.
For example, if you enter a UP position and the BNB/USDT CLOSE price is higher than the LOCK price at the end of the 5 minutes LIVE phase, you WIN, and if it is lower, you LOSE.
If you enter a DOWN position, you get to WIN when the CLOSE price is lower than the LOCK price at the end of the 5 minutes LIVE phase and lose when the price is higher. That’s the classic way the PancakeSwap prediction market has been modified.
The Phases
There are three phases to each round, during which users put on their best Nostradamus impression and try to see into the future of cryptocurrency (we promise it’s not actually based on psychic ability at all!)
Phase 1 – Prediction Phase
At this phase, you can pick a position indicating either UP or DOWN depending on what you think should happen at the end of 100 blocks (5 Mins).
Phase 2 – Live
Here the prediction is live, the locked price is set, and you can watch live market movements on the BNB/USDT pair. At the end of this phase (after 100 blocks), the close price will be set, and the results will be determined whether the close price is lower or higher than the live price. If you win the phase, you will be able to move to the next stage, which is when winnings are claimed.
Phase 3 – Expired
This phase is after a round has been concluded, and it is only for visual reference.
For the price feeds, PancakeSwap uses two sources.
Chainlink Oracle
Binance BNB/USDT
The Chainlink Oracle updates prices within 5 minutes and is used to determine the winning side. Chainlink Oracle has been touted as one of the most reliable, secured, and decentralized price oracles in the blockchain and has been integrated into a lot of projects.
Binance BNB/USDT is used for real-time updates of the BNB/USDT price in the prediction market. Due to the integration of these two price sources, there will be a difference in the price of the assets, but this difference will be insignificant to most users.
Fees
3% of each total round pot will go to the PancakeSwap Treasury, according to the Medium post containing the prediction market information. This collected % will be used to buy back and burn CAKE every Monday, helping to maintain the closed value loop of the token.
Roadmap and Conclusion
PancakeSwap released the stats of the prediction market 24hrs after the release. They recorded at:
Total volume: 15,976 $BNB ($8.8M)
Biggest round: #208 – 140.25 $BNB ($77k)
Source : bsc.news
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