Re:Bet

ResearchBet is a decentralized prediction market platform that combines on-chain verification with off-chain betting using Yellow SDK's state channels. It enables users to create markets around scientific research questions and place unlimited bets with zero gas fees.

The Problem: Traditional prediction markets have high gas costs that make frequent betting economically unfeasible. Research institutions need a way to create low-cost markets for research outcomes while maintaining blockchain security.

The Solution: By leveraging Yellow SDK's state channels (Nitrolite protocol), ResearchBet allows users to:

• Create research prediction markets on-chain (one-time gas cost)
• Place unlimited off-chain bets with instant settlements (zero gas)
• Settle final outcomes on-chain for permanent record
• Maintain full transparency and provability through blockchain verification

Use Cases:

• Pharmaceutical companies creating markets for clinical trial outcomes
• Academic institutions betting on research publication success
• Investors hedging on research project completion
• Public markets for scientific consensus on controversial topics

The platform uses a dual-contract architecture: ResearchMarket.sol for market creation and resolution, and YellowSessionManager.sol for off-chain session management. Users deposit USDC once, create a state channel session, place multiple bets without gas costs, and settle everything on-chain when the market resolves.

Smart Contracts (Solidity):

• ResearchMarket.sol: Core market logic with ERC7824-compatible interfaces for Yellow SDK integration. Handles market creation, bet placement, resolution, and winner claiming with automatic fee distribution.
• YellowSessionManager.sol: Manages state channel sessions using Yellow's Nitrolite protocol (ERC7824 standard). Handles deposits, withdrawals, and off-chain bet settlements.

Frontend (Next.js 16, React 19, TypeScript):

• Server-side rendered pages for optimal performance
• MetaMask integration for wallet connectivity
• Real-time odds calculation and display
• Form validation with TypeScript for type safety
• Responsive UI using Radix UI components and Tailwind CSS

State Channel Integration (Yellow SDK):

• Integrated Yellow SDK's Nitrolite protocol for gasless betting
• Session creation and management for off-chain interactions
• Deposit/withdrawal mechanisms for channel management
• Off-chain bet placement with on-chain settlement

Development Stack:

• Hardhat 3.x for smart contract compilation and testing
• Ethers.js v6 for blockchain interactions
• Hardhat EDR for local blockchain simulation
• TypeScript for type-safe development

Technical Highlights:

1. Gasless Betting: All individual bets happen off-chain via state channels, with only the initial deposit requiring gas. This reduces costs by 99%+ compared to traditional markets.
2. Real-time Odds: Dynamic odds calculation based on pool ratios, updated instantly as bets are placed.
3. Automated Settlements: Winners can claim their share of the pool plus their original bet, with automatic fee distribution to the platform.
4. ERC7824 Compliance: Full compatibility with Yellow's Nitrolite protocol for seamless state channel integration.