Picking The Pulse, Polkamarkets Poses As The New Leader In The Global Defi Prediction Markets

The DeFi is not just the future of the blockchain and cryptocurrencies but it is “The Future.” The recent Robinhood/Gamestop incident has already rung the bell. It is all but a matter of opportunity and the right time.

Yes, bigger scalable changes are gradual but many would agree that what happened with Gamestop definitely has the potential to act as a catalyst for this much-needed change. For investors, it is needless to say that in the finance market, those who can sense the air early, are bound to taste the sweetest fragrance. In this article, we will be talking about a promising project that is already picking the pulse of the prediction market and challenging the conventional. Following their incubation by Moonrock Capital, Polkamarkets is already grabbing eyeballs and that’s what keeps us hooked as we do this article focussing on the usability of the $POLK Tokens.

In the previous Polkamarkets review article, we already explained how Polkamarkets is eyeing the Prediction market like none other by relying on the Polkadot network and leveraging the DeFi mechanism. The fact that Polkamarkets brings some advanced features on the platform by including eSports and cryptocurrency prices and real-world events while also allowing users to create custom markets on the platform makes it a little more than just a prediction market. Polkamarkets platform is powered by a dedicated $POLK token. To understand the mechanism that drives Polkamarkets and makes it scalable it is important to understand the why and how of the $POLK tokens.

Incentivizing To Maintain Liquidity And Push Engagement

Image created by @Urpquake

Unlike a typical prediction market, Polkamarkets makes decentralized predictions not only profitable for the “forecasters,” but also rewards LPs (Liquidity Providers). The users who make predictions by engaging on the Polkamarket platform will be able to mine the $POLK and get rewarded. And, while it is nothing revolutionary as incentivizing the “forecasters” to drive engagement is a common practice, what’s innovative about the tokenomics of $POLK is that it also allows traders and investors to earn on their investments by becoming a liquidity provider.

Rewards For Liquidity Providers

In a recent update concerning the tokenomics, the Polkamarket team has confirmed that “⅔ of all platform fees generated by forecasting on Polkamarkets (0.2% of the value of all trades) goes directly to LPs as ETH or DOT. Additionally, ⅓ of all platform fees (in ETH or DOT) go to auto-purchase $POLK via smart contracts on DEXs to be sent to LPs as an additional yield farming reward.” These incentives are in place to encourage both LPs and forecasters and drive participation on the platform. Moreover, the $POLK tokens compliment the community-driven vision of the Polkamarkets team striving relentlessly towards creating a market leader in the decentralized predictions market.

Decentralized Prediction Market Is The Future

Image created by @Urpquake

Prediction markets are not a new concept, however, the charm of Ethereum-based decentralized prediction markets is fading. Or, to put it in perspective, it never really peaked because of the limitations of the ERC20 protocol. However, with the revolutionary POLKADOT network, we are sure to see some incredibly innovative projects that could reshape the entire decentralized predictions market. Polkamarkets makes good use of the POLKADOT network and is creating an exclusive entertainment-prediction market by providing users with a range of options and also due incentives to drive participation. The native token also adds to the brand value and apart from the typical utility on the platform it strengthens that much-needed sense of growing as a community which is crucial to any decentralized network.

It’s Altseason And What If ETH Picks Up

It is the altseason and the market is already Bullish. Also, it is very likely that ETH prices will soar in the future. That would trigger the prices of other altcoins as we have seen the phenomenon time and again. The case in point: what happens to DOT projects with a push in ETH prices? There is no guessing that even a slight increase in the ETH prices will have a multiplier effect on the prices of promising DOT-based project tokens. While short-term opportunities abound, Polkamarkets is in for a long haul. We will keep you posted once the team comes up with fresh updates on the deliverables.

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