Prediction market mechanism
Pool creators can initiate prediction pool as well as participate in the prediction pools themselves.
To create a prediction pool, 3 parameters must be set:
- 1.The crypto asset
- 2.The time period for placing a bet
- 3.A customized pool name
After launch, the initial starting price is queried through Chainlink's oracle services.The Bounce prediction engine will get the initial oracle price when the pool is launched and set the starting price. Then users can make a bet based on the starting price.
Bets are are placed with AUCTION tokens. Users have a period of time to place their bets and are able to bet on both sides multiple times.
After the betting period ends, the pool enters into the final price query stage. During this stage, bets are closed and the Bounce prediction engine will get the average price for 2 hour and set the final price, after which smart contracts compare the starting and the end prices and deliver the results. During this time period, no one can make bids.
At the end of the pool, participant can reveal the results and check their winning and losing results.
All winners will share the total AUCTION pool, base on 2 criteria:
- 1.Their proportional AUCTION stake.
- 2.The timing of their bet, where earlier bets get a higher share.
The earlier you bid, the more weight your bid will be toward reward calculation.
Special cases:
- 1.If all bidders are on the winning side and there is no bidder on the loser side, then bidders claim back their original principle tokens.
- 2.If all bidders are on the loser side and there is no bidder on the winning side, then bidders lost their tokens and tokens will be burnt.
Fees:
The fees for betting is 3% charged to winners' rewards.
Bounce incentivizes participants to reveal the result at the end of each prediction. The first participant to reveal the result will get 1% of the fees from the prediction pool.