Degens Unite: A Daily Dose of Web3

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In case you’ve been living under a rock, people are going crazy on Polymarket right now.

(Seriously! Check out the graph for Total Value Locked 👆 which is typically an indicator of the level of trust and usage of a DeFi platform).

Polymarket lets anyone (outside of its restricted areas, of which the US is one) bet on the outcome of pretty much anything under the sun.

For example, as of this writing there’s been over $411M bet on the result of the US election alone!

Polymarket is unique in that it doesn’t have a market maker which is what ‘normal’ betting platforms have.

Instead, because it’s decentralized, it uses an automated market maker – i.e. an algorithmic system to decide on pricing for each result, based on the amount of money bet on each side by real punters.

And in a few weeks they’re about to launch something even cooler/crazier:

Leveraged bets and derivatives-based bets.

With a leveraged bet, instead of betting on the outcome of X with your own money, it would mean you can bet on an outcome and get multiple times the return (or multiple times the loss) by only putting a small amount upfront.

For example, you might put $10 upfront but do a 5x leveraged bet, returning you with $50 if you’re successful – but requiring you to pay an additional $40 if you lose the bet.

Derivatives-based bets mean you can bet on more than just the result.

For example, betting on an election winner would be a ‘base market’ bet; compared to betting on the margin of victory (a derivative bet).

It’s no easy task!

But, the fully on-chain derivatives platform, D8X, is working with Polymarket to bring it to market.

Sounds exciting for degens, and incredibly dangerous for professional and non-professional gamblers alike.

The good news: regardless of what Twitter says, you don’t have to partake in Polymarket.

Conclusion:

In conclusion, Polymarket is shaking up the betting world with its innovative approach to decentralized prediction markets. With the introduction of leveraged bets and derivatives-based bets, it offers gamblers and traders a new way to engage with a wide range of events and outcomes.

While the potential for high returns is enticing, it’s important to approach such platforms with caution, as the risks can be significant. As Polymarket continues to evolve and expand its offerings, it will be interesting to see how the market responds and adapts to these new possibilities.

For more trending news articles on DeFi and the latest developments in the world of decentralized finance, check out DeFi Daily News.