What is OpenPredict (OPT)?Review of the new DeFi project OpenPredict.

5 min readAug 27, 2020

Recently, the sphere of DeFi, consisting of open source projects and designed to make the world of Finance more open and free with the help of blockchain and smart contracts, has been rapidly gaining popularity.

The total cost of equity locked into DeFi protocols soared 271% in less than 2 months and surpassed the $ 7 billion mark for the first time, DeFiPulse reported.

LEND( Aave) is the first DeFi token to hit $1B. In the DeFI rating of projects in terms of locked funds, the first place is taken by Aave, which holds $1.51 billion, followed by MakerDAO with $1.42 billion, CurveFinance with $1.15 billion, yEarnFinance with $844 million, and Synthetic with $800 billion. Compound, which was at the top of the DeFi list a few weeks ago, dropped to sixth place with $798 million.

However, this segment is still under-developed and not as large. Its advantages over the traditional banking system with expensive loans and low-yield deposits are undeniable. This means that the market has a significant growth potential.

What is OpenPredict?

OpenPredict is the first DeFi protocol that turns direct predictions into liquid assets.

All this is tied to bets, predictions, and any events in the world. Moreover, this can be done without intermediaries, using the DeFi tools.

The OpenPredict protocol creates a system of 3 smart contracts for each event:

The first contract acts as collateral for the predictor of the event.
The second contract represents the correct prediction (for the success of the event).
The third contract is an incorrect prediction (for the failure of the event).

Tokens representing these contracts can be added to secondary markets, made predictions in real time, or exited before the event ends by trading them on DEX platforms. That is, the huge money that is now locked up in predictions rates and other similar things can bring even more money on their trading.

OpenPredict’s vision is to turn predictions directly into liquid assets with options tokenized into tokens. Not only is it limited to the cryptocurrency market, but it also opens up access to other markets such as forex and commodities.

One of the highlights of OpenPredict that the project highlights is the ability to consolidate three important commodity markets in the crypto market: predictions, defi, and trading.

Predictions

Two tokens TRUMP_WIN and TRUMP_LOSE will be created.

Those who believe that Trump could be reelected can mint TRUMP_WIN, on the contrary, they are minted TRUMP_LOSE.

The total pool rate on both sides is $ 100,000 60,000. Of these: $ 40,000 in case of Trump’s victory and $ XNUMX XNUMX in case of Trump’s loss.

Suppose that when Trump is elected for the next term, the position of the player betting on Trump to win wins and Trump’s losing pool ($ 40,000) is proportionally divided among the TRUMP_WIN token holders.

The total pool of TRUMP_WIN is 60,000 USD 100,000 and issues 0.6 0.4 such tokens, each TRUMP_WIN token will be worth USD XNUMX. The TRUMP_LOSE equivalent per token will cost $ XNUMX.

Their prices will fluctuate depending on the current news, and you can trade them on exchanges.

TrustPredict

TrustPredict is the first product built on the OpenPredict protocol. It offers a simple and easy-to-use user interface for deploying smart contracts for the non-refundable deposit of funds wagered as part of the forecast and possible payout to the winner.

The functionality of TrustPredict is simple, but it makes it much easier to use some of the most basic elements of smart contracts that are otherwise not available not only to mainstream retailers, but to the broadest part of the crypto market that is not very good at coding.

In addition, while the first version of Trust Predict will focus on cryptocurrencies, the later version will allow 1-on-1 options to be launched even in the stock market. We are already in high-level negotiations with a leading oracle service to enable data links for the FTSE. It would be a leap forward in combining exposure to stock markets with cryptocurrencies.

As Trust Predict requires no middlemen and the prediction launched are completely peer-to-peer, and are even shared from one peer to another, no central securities provider is involved.

OPT

OPT is a utility token in the OpenPredict ecosystem that is used for the following purposes:

Minting Fee: For each token issuance event, all participants pay a 1% fee. Mining fees are used to buy OPTs from the market and then burn them.

Escrow Maintenance Fee: During the group distribution, the winning Token Holder is deducted 1% prior to distribution. This margin maintenance fee is apportioned among OPT members.

OSwap discounts: The swap transaction fee is 0.15%, but this only applies if the trader has an OPT token. When paying commission without using OPT, the commission is 0.2%.

TrustPredict Maintenance Fee: TrustPredict will charge a margin of 0.5% for forecasts shorter than 3 months and 1% for forecasts over 3 months. If the prediction fee is paid to OPT, the commission will be reduced by 25%. If commissions are paid through OPT, they will be deducted. If paid for with any other digital assets, these tokens will be distributed among the OPT members.

How to earn OPT token?

OpenPredict is launching OPT DAO the community platform to increase OpenPredict`s ecosystem and community in cooperation with DAO Maker, an accelerator of tokenized StartUp`s.