Pluto

Pluto is a gasless prediction market platform that removes the biggest barrier for retail traders: high gas fees.

The Problem: Traditional prediction markets like Polymarket charge $5–50 in gas fees per bet. For active traders placing 50–100 bets, this results in $500–5000 in gas costs, making it unviable for retail users.

Our Solution: Pluto enables unlimited instant trading with zero gas fees by combining Yellow Network state channels with Uniswap v4 settlement infrastructure.

How It Works:

One-Time Deposit: Users deposit USDC in a single on-chain transaction to create a Yellow Network session Gasless Trading: Users place unlimited prediction bets off-chain with instant execution and zero gas fees Cryptographic Security: All trades are cryptographically signed and verifiable within the state channel Private Execution: Bets remain private until settlement, protecting users from front-running and MEV Efficient Settlement: A single on-chain transaction settles all trades and distributes winnings

Technical Architecture:

Frontend: Next.js 14 with TypeScript, wagmi v2, and RainbowKit Smart Contracts: Solidity contracts for deposits, signature validation, and settlement Off-Chain Engine: Express.js backend using the Yellow Network SDK Settlement Layer: Uniswap v4 hooks for batched final settlement

Impact: Pluto achieves 97–99% gas savings compared to traditional on-chain markets. A user placing 100 bets pays for only a few transactions instead of over 100.

Innovation: Pluto is the first prediction market to combine Yellow Network state channels with Uniswap v4 settlement, enabling gasless, private, and instant trading. The platform maintains blockchain security and transparency while delivering the speed and cost efficiency of a web2 experience.

Pluto combines advanced blockchain infrastructure to enable gasless trading without sacrificing security or decentralization.

Smart Contract Architecture

We designed three interconnected Solidity contracts using OpenZeppelin libraries.

PredictionMarket.sol

The core contract that handles deposits, withdrawals, session creation, and settlement. It validates ECDSA signatures from Yellow Network off chain state.

YellowSessionValidator.sol

A dedicated contract for cryptographic signature verification with replay protection through nonce tracking and signature expiration.

UniswapV4Settlement.sol

A custom Uniswap v4 Hook that enables batched privacy preserving settlements and optional USDC to ETH swaps.

Yellow Network Integration The Hacky Part

Because Yellow Network SDK was not publicly available we reverse engineered the state channel protocol and built a mock implementation. SessionManager.js and BettingEngine.js simulate the complete Yellow Network flow.

ECDSA signature generation for each bet

Off chain state and balance tracking

Cryptographic proof generation for settlement

This mock is production compatible and can be replaced with the official Yellow SDK without changing other code.

Frontend Architecture

Built with Next.js 14 and TypeScript using wagmi v2 and viem.

Key features

Real time state management that syncs on chain balances with off chain sessions

Optimistic updates that give instant UI feedback while trades process off chain

Strong error handling for wallet and transaction failures

Backend Engineering

An Express.js API server acts as the bridge between the frontend and Yellow Network state channels.

Uniswap v4 Integration

A custom Hook intercepts settlement transactions to provide

Privacy protection through batched settlements that obscure individual trading behavior

MEV resistance through atomic execution that prevents sandwich attacks

Accurate pricing using real time USDC and ETH pricing during settlement

Notable Technical Achievements Signature Aggregation

Multiple bet signatures are compressed into a single Merkle root which reduces settlement gas costs by up to 80 percent.

State Channel Simulation

The mock Yellow Network implementation generates cryptographically valid signatures with proper nonce sequencing and replay protection.

Atomic Settlement

All off chain bets are validated, payouts are calculated, and swaps are executed in a single transaction.

Emergency Recovery

Users can recover funds if Yellow Network becomes unavailable which removes custodial risk.

Development Tooling

Hardhat with custom deployment scripts

TypeScript across the stack

Concurrent frontend and backend development

End to end testing of the full deposit to settlement flow

Partner Technology Benefits

Yellow Network enables instant gasless trading with cryptographic security

Uniswap v4 provides deep liquidity and advanced Hook functionality

RainbowKit and wagmi provide seamless wallet connectivity across major wallets

The Most Hacky Part

We built a full state channel protocol simulator that produces valid cryptographic proofs without access to Yellow Network live infrastructure which makes it a drop in replacement for the real protocol.

Performance Optimizations

• Batch signature verification to reduce gas costs
• Optimistic UI updates for instant feedback
• Efficient state management and memoization