Chimera

AI-powered prediction markets on Hedera with PYUSD. Bet on crypto prices, sports, and events.

Chimera

Created At

ETHOnline 2025

Project Description

Chimera is a prediction market platform that combines blockchain technology with artificial intelligence to create a betting ecosystem. The platform operates on Hedera Hashgraph's EVM-compatible testnet and integrates multiple technologies to provide users with a prediction market experience.

The platform features two market types. Price markets focus on cryptocurrency price predictions for Bitcoin and Ethereum, utilizing real-time data from Pyth Network's decentralized oracle system. These markets automatically settle based on actual price movements. Event markets cover yes/no questions across various categories including crypto trends, sports outcomes, and political events, with resolution handled by market creators.

The platform's value proposition lies in its integration of multiple blockchain ecosystems and AI technologies. Users can bridge PYUSD stablecoin from Ethereum Sepolia to Hedera Testnet through a cross-chain bridge. The bridge operates with a 0.1% fee and typically completes transfers within 2-5 minutes.

Chimera integrates with ASI Alliance's artificial intelligence framework. The platform features a local AI agent powered by MeTTa symbolic reasoning language and the Hyperon engine. This agent analyzes market conditions, identifies contrarian opportunities, assesses risk levels based on trading volume, and provides betting recommendations through a natural language chat interface. The AI operates locally, ensuring user privacy while delivering market analysis.

The technical architecture leverages Hedera Hashgraph's fast finality and low transaction costs, with most operations completing in 3-5 seconds for approximately $0.001 in HBAR gas fees. Pyth Network provides price data from over 95 publishers, ensuring accurate price feeds for automated market settlement.

PYUSD integration brings stability to the betting ecosystem, as users can bet knowing their funds maintain a 1:1 peg with the US dollar. The platform's frontend is built with Next.js 15 and TypeScript, providing a user interface that works across devices. Users can connect wallets, bridge funds, analyze markets with AI assistance, place bets, and monitor positions from a single interface.

Security is important in Chimera's design. Smart contracts implement security patterns including reentrancy protection, access controls, and safe mathematical operations. The cross-chain bridge operates with multi-signature validation and includes rate limiting and emergency pause mechanisms. The AI agent runs locally, ensuring user queries and analysis remain private.

The platform represents the convergence of decentralized finance, artificial intelligence, and prediction markets, creating an environment where users can leverage both human intuition and AI analysis to make informed betting decisions in a secure and transparent ecosystem.

How it's Made

Chimera is built using a multi-layered architecture that combines several blockchain and AI technologies. The project uses Hedera Hashgraph as the primary blockchain infrastructure, leveraging its EVM compatibility to deploy smart contracts written in Solidity. The main ChimeraProtocol contract handles market creation, betting logic, and automated settlement, while additional contracts manage PYUSD token wrapping and Pyth oracle integration.

The frontend is developed with Next.js 15 and TypeScript, providing a modern React-based interface with server-side rendering capabilities. The UI components are styled using Tailwind CSS for responsive design across devices. Ethers.js serves as the primary library for blockchain interactions, handling wallet connections, contract calls, and transaction management.

For cross-chain functionality, the project implements a custom PYUSD bridge connecting Ethereum Sepolia to Hedera Testnet. The bridge consists of smart contracts on both chains, with an automated operator service written in Node.js that monitors Ethereum events and triggers corresponding minting operations on Hedera. This enables seamless transfer of PYUSD tokens between the two networks.

The AI integration uses ASI Alliance's framework with a local agent built in Python. The agent runs a Flask HTTP server that processes market analysis requests using MeTTa symbolic reasoning language and the Hyperon engine. This creates a symbolic AI system that can analyze market conditions, identify patterns, and provide betting recommendations based on predefined logical rules stored in MeTTa knowledge base files.

Pyth Network integration provides real-time price feeds for automated market settlement. The project uses Pyth's pull-based oracle model, where price updates are fetched from Hermes API endpoints and submitted on-chain only when needed. This reduces gas costs while maintaining accurate price data for BTC/USD and ETH/USD markets.

The development environment includes extensive testing infrastructure with Hardhat for smart contract testing, Jest for frontend unit tests, and custom Node.js scripts for integration testing. The project uses environment-based configuration to support multiple deployment targets including local development, testnet, and production environments.

Security measures include multi-signature wallet integration for bridge operations, rate limiting to prevent abuse, reentrancy guards in smart contracts, and local AI execution to maintain user privacy. The architecture prioritizes decentralization while maintaining practical usability for end users.

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