PaperBet

This project makes prediction markets safer by removing the risk of losing money. Users join a market by staking PYUSD on “Yes” or “No.” Instead of just holding these deposits, the funds are sent to Aave where they earn yield during the prediction period. When the market ends, everyone gets back their original deposit, and the winners also receive the interest earned, shared fairly based on how much they staked.

By combining predictions with yield from DeFi, the platform creates a fun and risk-free way to participate. People can make bets, vote on outcomes, or join community games without worrying about losing their money, while winners still get a meaningful reward from the interest.

The frontend is built with React + Vite, using HTML and CSS for the interface. It includes wallet connection features so users can connect their crypto wallets directly to the app and stake PYUSD into the prediction markets.

The backend is powered by a Solidity smart contract that manages deposits, integrates with Aave to supply PYUSD, tracks user positions, and distributes both deposits and yield fairly once the market resolves. The wallet connection ensures a smooth flow between the user’s funds and the smart contract, making the experience simple and secure.