Introduction

Prediction market based on Pari-Mutuel algorithm

How Pari-Mutuel Algorithm Works

• Pooled System: All bets of a particular type are combined into a single pool.
• Winning Amount Distribution: Payouts are distributed proportionally based on the amount bet on each outcome.

1. Collect Bets: Aggregate all bets placed on the specific event into a single pool.
2. Apply Deductions: Subtract the house takeout, taxes, and any other fees from the total pool.
3. Determine Winning Bets: Identify which bets are winners based on the event outcome.
4. Calculate Payouts: Distribute the net pool among the winning bets proportionally.

   • Payout per Winning Bet = (Net Pool / Total Amount Bet on Winning Outcome) * Amount Bet on Individual Winning Bet

5. Distribute Winnings: Payout amounts are credited to the accounts of those holding winning bets.

Technical Architecture

• Blockchain: Hedera
• Subgraph: Data provider

Market Potential

• Industry Size: Predicted $500 billion by 2028
• Target Audience: Crypto, Sports bettors, eSports enthusiasts, and casual gamblers who seek transparency and fairness.
• Competitive Advantage: Trustless environment, lower operational costs, global accessibility.

Revenue Model

• Fee Structure: Revenue generation through small fees on each transaction (e.g., a percentage of the total pool).
• Additional Revenue Streams: Partnerships, sponsored markets, or premium features.
• Growth Potential: User acquisition and retention strategies to drive platform growth.

Upcoming Fetures

• Phase 1: Using oracle to resolve market
• Phase 1.1: Going Crosschain (LayerZero)
• Phase 2: Feature Expansion - Introduce advanced features like analytics, multi crypto currency support, and mobile apps.
• Phase 3: Community & Partnerships - Build a strong user base and form strategic partnerships.
• Phase 4: Global Scaling - Expand the platform’s reach to new markets.

Demo