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115 sats \ 1 reply \ @mega_dreamer OP 2 Nov \ parent \ on: Predyx Market Creation Guide (Plain English) oracle
Hey @Undisciplined - thanks for the feedback, sorry it took me a while to respond. Have been busy with some super critical technical stuff for Predyx.
Yes its in our roadmap, we'll implement it after some major architecture changes we've been implementing currently to overcome the in-game live HFT trading. @Team_Predyx Please prioritize this feature.
Yes - we're working on over-hauling our AMM algo. Currently we use LMSR and this is a limitation of LMSR where liquidity is constant irrespective of volume. While LMSR was a great way to bootstrap Predyx, it has served its purpose with thinly traded markets in the early days of Predyx. It's time to move on to more complex AMM.
We're working on UniSwap style AMM. We're treating YES-NO as asset trading pair just like BTC-USD trading pair. Its pretty fascinating.
I'm 100% sure that our new AMM algo will blow your mind away 😇
Currently we only offer spot price trading thus such issues. This will be fixed when we introduce limit orders. All your trades will be treated as limit orders. The Spot orders will be basically limit order with current price. We'll start working on limit orders in month or so.
shocknet new CLINK
No - just googled it. Looks very interesting. Kinda like hodl invoice but better.
Will check it out in more details over the weekend. Thanks for sharing.
Then Strike will just become our custodian (LSP - Lightning Service Provider). Its basically moving the trust from Predyx to Strike. Plus its a real pain to get Strike to become our custodian. They have so many rules for KYC etc.
There are better options like Zeebede or Magnolia. But in the end they are all acting as your custodian which will require strict KYC.
We'd like to avoid KYC as much as we can. Its our last resort.
why is it necessary for Predyx to move to non-custodial solutions?
- Regulations: In the US you either have to have a non-custodial wallet or get a MTS (Money transmitters license)
- Trustless and decentralized solutions. Currently every user have to trust Predyx that we will redeem their shares for sats.
NWC is great, but cannot help us with issuing fully backed tokenized conditional shares.
However that being said, NWC is coming to Predyx either way. Soon you'll be able to login to Predyx with it.
I love alby as well. However there is some cost associated with it. It requires to spin a separate VM (Virtual Machine) or a container for each wallet. Cost wise, it may not be a viable solution for us at this time.
I'm basically looking for solutions similar to Polymarket that allows us to issue tokenized conditional market shares that will be redeemable based on the oracle's decision. These conditional tokenized shares must be backed by btc/sats - to overcome bankrun problem.
So basically a trustless, decentralized solutions with non-custodial wallets.
Guys - please don't hate me for using AI to generate the above guide. I could have never written such easy to understand guide without using AI.
BTW: I've spent hours going back and forth with AI to come with this guide specifically for Predyx
Hey @Solomonsatoshi - thanks for sharing your insights and concern regarding the fees.
@Team_Predyx did an awesome job in explaining the nuances. However I thought it would be nice to clarify few more things:
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So far Predyx is not making profits from the fees collected. 100% of our markets run at a loss.
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Fees collected are deposited to the market wallet. When Predyx official team or any Creator creates a market, they need to provide the initial capital to provision the initial liquidity. In other words the "initial capital" means worst case loss (WCL) for the market creator. Thus the fees collected go directly into market wallet to offset the loss of the market creator. This how most of AMM (Automated market maker) works.
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The default fees for creating a market on Predyx is: 0.45% buy, 0.35% sell and 0.20% win + 1 sats fixed fee per transaction. However the creator can choose to set their own fees. They may choose to offer reduced fees or higher fees. The max fee cap is set to 5%.
There are some creators who choose to offer very minimal fee as low as 0.10% such as @BlokchainB, while there are other creators who choose to offer high fees of 4%.
Thus - it's in best interest of the trader to first check the market fees. And then decide to trade if you agree with the fees.
The audio is AI, but the video was made by our in-house video creator. I think he uses Adobe products to create videos.
Happy to create one for ~Stacker_Sports
Thanks - its was unnecessarily holding up liquidity.
We can use this liquidity for some other large market.
BTW: Here's the market URL: https://beta.predyx.com/market/bundesliga-winner-2nd-place-1759748191