Introducing TrustPredict Phase 1: SPOT — Synthetic Asset Minting & Trading
repost of an article published in Medium:
https://medium.com/openpredict/introducing-trustpredict-spot-synthetic-asset-minting-trading-phase-1-fdf424b1f970
OpenPredict unlocks the limitless potential of prediction markets, and harnesses the blockchain in order to power a new standard of predicting. With OpenPredict, live predictions exist as liquid, capital-backed assets and anyone can mint event-specific tokens and effectively tokenize and trade their own expertise.
As a result, our platform opens up new pathways of exposure to stocks, commodities, and Forex allowing anyone to engage directly in the decentralized trading of digital assets representing predictions on a range of real world events. OpenPredict is expanding to enable a greater range of liberated trading, and we are adding the ability to mint and trade synthetic assets to our feature set as well as releasing the TrustPredict SPOT version of our app. These upgrades to our platform make up part of our expansion campaign that will be rolled out five phases, and we’ll begin by outlining Phase 1.
Turning live predictions into liquid assets
Our platform is a decentralized, open protocol that allows anyone to turn their predictions into liquid assets by minting tokens that represent the possible outcome of a particular event, and fluctuate in market value, relative to changing market odds. We utilize a tri-smart contract system which sees three smart contracts being generated for every event: one acts as an escrow for event predictors, the second contract mints tokens that represent correct predictors, and the third contract mints tokens that represent incorrect predictors.
In this way, we are able to open up access to traditional markets such as Forex, stocks, and commodities and assist the crypto community in gaining exposure to these markets with options-style liquid predictions. In addition, anyone is able to quickly get started by downloading the TrustPredict app.
Creating synthetic assets
Our platform is expanding as we press on with our mission to fully liberate the ability to trade any asset, and to allow a wide range of new, innovative digital assets to encapsulate value and bring it on-chain.
In our opinion, synthetic assets do just that, and widen the breadth of digital assets by allowing the straightforward creation of tokens that reflect the price of a particular cryptocurrency or commodity without needing to be backed by it, and can simply be backed by “fiat” stablecoins. Synthetic assets or “synths” can in turn be freely traded and exchanged and take the form of a medium of exchange as agreed by two parties.
Phase 1 will allow our protocol to facilitate the minting and trading of synthetic assets that act as on-chain representations of real world commodities such as Gold, Silver, and Oil or synthetic versions of BTC on the Ethereum network that can be openly traded on our platform and through a range of CEXs and DEXs that support ERC-20 tokens.
P2P synthetics markets on TrustPredict
In addition to enabling the creation of synthetic assets, OpenPredict completely decentralizes the trading process, does away with any intermediaries or third parties, and facilitates the peer to peer (P2P) trading of synths via the TrustPredict app.
Here, two counterparties come together in order to carry out the synthetic asset creation process. These counterparties can be retail traders, hedge funds, or two VC firms who seek to trade a specific synthetic asset between themselves. This P2P system optimises the trading of synths and avoids a situation where synthetic assets are randomly minted by platform users who then attempt to create liquidity on an exchange, in the hope that there will be demand from traders for the synthetic assets that have been minted.
TrustPredict leaves the synthetic asset creation between the two counter-parties themselves, and as the protocol develops, TrustPredict will also expand its capabilities and feature set. Just as OpenPredict will evolve over five phases, we will release new versions of TrustPredict, with the app becoming more complex with each version.
TrustPredict SPOT
The first version of our app is a simple, easy to use, and straightforward solution that allows anyone to quickly start trading via the app. Version 1 of our app, called TrustPredict SPOT, enables two pre-established counterparties to come together and mint assets that hold two opposing positions on any speculation. Here, one party must take a long position with the other taking a short position.
As an example, the two counterparties could take opposing positions related to the price of Bitcoin, Ethereum, Gold, or Silver on December 31, 2020. Both deposit collateral for a position on a future price of an asset with the funds being held in an escrow smart contract. Once the final results of the speculation are known, the escrow contract distributes rewards to either the long position token holder or the short position token holder.
TrustPredict SPOT allows anyone with an understanding of digital assets to engage in P2P trading and effectively tokenize their expertise. Despite its current simplicity, our app allows for speculation on a range of innovative on-chain assets that have no previous precedent; as our protocol allows people to create asset types that have never existed before. The launch of TrustPredict SPOT kicks off Phase 1 of our product roadmap and there is much more to come from OpenPredict.
Website: https://openpredict.io
Telegram Chat: https://t.me/openpredict
Telegram Announcements: https://t.me/OpenPredictAnnouncements