Polymarket is a decentralized prediction market platform built on Polygon that allows users to trade on the world’s most highly-debated topics such as cryptocurrencies, sports, etc. On Polymarket, users build a portfolio based on their forecasts and earn a return if they are right.
How does it work
Polymarket is now using both AMM and Order Book mechanisms so that users can bet on events on the platform.
AMM
Polymarket uses the AMM mechanism which requires liquidity to be added to prediction contracts on the platform. The liquidity provider can be participants, third parties, and sometimes Polymarket themselves.
Order Book
Polymarket integrates the Order Books because they allow traders to make Limit Orders, essentially specifying a range of prices at which they’re willing to transact, and how many shares they’re willing to buy at each price.
There are two types of orders that you can submit: market and limit orders.
- Market orders: are when you buy or sell shares from the pool of existing orders in the market.
- Limit orders: are when you buy or sell shares based on a specific maximum price and amount.
Highlights
Decentralization
Polymarket’s decentralization is one of the important features that ensure safety, security and transparency for users when making transactions on this platform. Polymarket does not manage user funds directly so trading on the platform is private and transparent.
Fast transaction speed and low cost
Polymarket is built on Polygon so it can process transactions faster and at low costs to provide a high user experience for users.
Many types of prediction markets
Polymarket offers many different types of prediction markets such as Binary Categorical and Scalar.
Development team
Polymarket’s development team has many years of experience in the field of technology in general and blockchain in particular. Notable members include:
- Shayne Coplan: He is currently the CEO of Polymarket and has worked in technology companies such as Chronicled, Genius.
- Liam Kovatch: is Head of Engineer at Polymarket. He used to work at 0x Labs as a software engineer and was also the CEO of Paradigm in the period 2018-2020.
Polymarket is a potential decentralized prediction market platform, it brings an exciting and novel feeling to investors and users when participating in the platform. With the development of blockchain technology, Polymarket can be one of the attractive prediction market and investment options in the future.