How QuickSwap’s New Prediction Market Could Conquer the Mega Bear
“Toto, I feel like we’re not in Kansas anymore.” The phrase applies as much to current cryptocurrency market conditions as it did when Dorothy uttered those words after entering Oz. As sad as it is, the DeFi summer and the 2020-2021 bull market are over. Projects and businesses that many thought were too big to fail are collapsing left and right. Although the sentiment on Crypto Twitter is particularly dire, with many users claiming that they are done with crypto for good, somewhere beyond the rainbow, the sky is blue and the profitable dreams you dare to dream could really come true. .
Table of Contents:
- Dragons fly over the rainbow
- Once you hit level 2, you never go back.
- Why not?
- Flying over the next level of DeFi
- How does this conquer the cryptocurrency bear market?
- Stakeholders reap the rewards
- Correct predictions win!
- Why oh why can’t I?
Dragons fly over the rainbow
During the summer of DeFi, decentralized exchanges (DEXs) have become the heart of DeFi, facilitating peer-to-peer asset trading without any middleman taking control of users’ private keys. But as traffic on Ethereum grew, major Layer 1 DEXs like UniSwap ran into serious trouble. Network congestion, high gas fees, and slow transaction times have led many smaller merchants to seek alternatives that offer a lower barrier to entry. Very quickly, Polygon and QuickSwap became the go-to solution for money-conscious merchants who didn’t want to spend an arm and a leg on gas costs.
Once you hit level 2, you never go back.
As the latest cryptocurrency bull market came to an end, gas fees on Ethereum returned to tolerable levels (for some), but those who crossed the rainbow from EVM to Polygon and QuickSwap will not return, not soon.
If low gas fees, attractive rewards for mining liquidity, and high APYs for punters aren’t enough to keep users engaged with the Polygon and QuickSwap ecosystems, the launch of PRDT Finance’s new forecast market should be the solution.
Flying over the next level of DeFi
On June 10, QuickSwap launched the prediction market created by PRDT Finance in its beta user interface.
In the few days since the prediction market went live, nearly 7,436 MATICs (worth around $3,063.51 at the time of writing) have been wagered on the platform. While that may not seem like much, it is a lot considering that the Prediction Marketplace is currently only available in the QuickSwap beta UI, which only has 15,100 visits compared to 1.3 million visits to the old DEX UI. As Roc Zacharias (one of the co-founders of QuickSwap and CEO of Lunar Digital Assets) recently told Bitcoinist, “we will be moving our beta UI back to our old address in the coming weeks.” This means that very soon, the PRDT prediction market will be exposed to 1.28 million more users, which should mean more activity for the prediction market.
How does this conquer the cryptocurrency bear market?
I’m glad you asked! The PRDT Prediction Market could help QuickSwap users beat the bear market in two ways:
Stakeholders reap the rewards
As QuickSwap explained on its blog that introduced the possibility of a prediction market, users of the PRDT platform pay a 3% fee to place a bet. 40% of the fee collected is used to market the FAST purchase and distribute it to Dragon’s Lair participants.
Based on the example of one of the other PRDT partners, it is reasonable to assume that 1% of daily DEX trading volume could be used to play PRDT. As of May, QuickSwap’s trading volume was nearly $1.5 billion.
- 1% of $1.5 billion = $15 million
- 3% of $15 million = $450,000
- 40% of $450,000 = $180,000
According to the latest DEX newsletter, Dragon’s Lair stakers received approximately $500,000 in staking rewards in the month of May. If the prediction market worked as the model above suggests, participants would have earned an additional 36% APY, and that’s with below-average DEX bear market trading volume. Can you imagine what could happen in a bull market?
Correct predictions win!
Staking is one way to beat the bear market with QuickSwap and PRDT, but it is not the only method.
QuickSwap and PRDT user Chris Ernst recently tweeted how he turned 11 MATIC into 1447 MATIC within days of the prediction market opening. This means Chris made over 13,000% in just a few days during a bear market, and he’s not alone.
Why oh why can’t I?
Somewhere over the rainbow, dragons fly. As everyone must know by now, dragons eat bears, and so do you! QuickSwap and its PRDT Finance Predictions Market are permissionless, so anyone can use them to beat (or eat) the bear market blues. Just keep in mind that the opportunity to win is not without risk and always do your own research.
Image by Mrs.Hall from Pixabay
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