Volatility Protocol
We are a marketplace that allows users to bet on binary outcomes(differently). A user gets a ticket for their bet, and can exercise their bet if they are winning at any time before their ticket expires.
Project Description
This is a marketplace where people can bet on binary outcomes. We want our project to kind of become like an SDK that allows anyone to create and participate in a 2-sided marketplace(where user(s) bets on a positive outcome, and the other(s) bet on a negative outcome). This will be really useful with the UMA's oracle, as people can begin betting on more subjective outcomes.
An example could be two groups betting whether the price of Ethereum will either go up or down relative to the current price(The price at the time of betting):
- The user will initiate a bet, and will specify an expiration date, and the nominal betting amount.
- The user can verify their bet at any time to lock in their winnings if and only if at that point in time, the user is correct in their prediction(In this case, ETH going up). The user cannot verify if ETH has decreased.
- If the expiry has passed without the user verifying (or if their prediction never came true during the entire time period), the users bet will be lost and consumed by the contract.
- After the expiry period, the user can redeem their funds if and only if there are funds in the contract, and they successfully verified before the expiry period.
How it's Made
This project is a web application with a front-end and a back-end that is entirely on chain. The back-end consists of a main smart contract that controls the betting, validating, and redeeming functionality, and another smart contract that fetches Ethereum price data from an optimistic oracle(UMA). For this hackathon, the example that was used as what users would bet on is whether the price of Ethereum would increase or decrease. The contract was deployed to the Georli testnet, and was tested in the Remix environment using Weth as the main currency for testing. The front-end was done in React & Typescript. We are extremely happy about having a working prototype, and using an Oracle for the first time. With only two members on the team, there was so much to take on, but it was amazing learning experience. We were both extremely impressed.
