An “option” is a type of derivative contract that gives its purchaser the right – but not the obligation – to buy or sell an underlying asset at a set price at (or, in some cases, before) an expiration date. Buying crypto options can often offer investors a relatively low-risk solution for trading digital assets compared to trading crypto futures or perpetual swaps.
Swaperry leveraged the idea of option trading and AMM to build a fully decentralized and unique prediction trading.
As Polkadot is currently under development, our prediction trading will be launched on Binance Smart Chain, and will be the first product in the Swaperry platform.
Like providing liquidity pool for token swap, a user can create a betting pool against an asset, with a custom expiry date and strike price. At the beginning, we want to see how users receive the product, so only operator can create pool.
In order to create a pool, they must personally contribute X equal numbers of green and red tickets.
Green ticket: bets price goes above strike price by expiry date. Red ticket: bets price goes below strike price by expiry date.
Other users can now see this pool, and can participate by buying greens/reds. When a user buys a green or red ticket, they must pay a price that is fair to all existing betters in the pool.
Pool will run continuously in multiple rounds. After a round ends, another round will begin.
Note: Anyone can create the pool ultimately, but at Swaperry, in the early stage, only our admin is allowed to do so. Swaperry can add money into the pool so as to increase the pot at any time, as a form of promotion. In the first phase, Swaperry will push promotion so participants can get more benefits.
When a round of a pool expires:
- If the asset price is above strike price, green wins.
- If the asset price is below strike price, red wins.
- If they are exactly equal, prediction and lottery reward will be sent to Treasury.
Rewards are structured as follows:
- 10% of all pool amount goes to a random ticket owner, as a lottery reward.
- 89% is split among all winners.
- 1% will be in treasury.
Ticket price will be in the form of BUSD plus PERRY. PERRY is the fee which will be burnt, and rewards will be given in BUSD.
When the pool expiry date hits, those who predicted correctly will receive the pool amount. However, whoever got it wrong could still earn NFT Achievements for losing!
NFTs must be the play-to-earn concept. Swaperry users can earn them by participating in our products.
NFTs should be tradeable, which means they must have some intrinsic value, as opposed to being just collectibles. For example, they can:
- Unlock new features on Swaperry.
- Give earners some advantages over others.
- Bring value in another product.
The nature of prediction trading is similar to gaming; therefore, it fits to add the play-to-earn element here. Concept of achievements within our prediction trading is introduced as below:
- Each achievement reduces the ticket price by some amount.
- There's a limited number of NFTs rewarded to achievement earners. Therefore, once the NFTs are exhausted, you won’t be rewarded anymore.
- The price reduction is split among earners.
- 1.Users will benefit from a huge temporary price reduction when they are the first to earn.
- 2.Users can immediately sell to those who'll take advantages from it with a high price if they are not interested in the reduction.
- 3.The number of NFTs rewarded is limited, so you might miss out if you're not promptly enough.
- 1.NFT has immediate present value: ticket price reduction.
- 2.NFT has investment/future resale value. As the number of Swaperry users does rise along with that of NFT supply is limited, the price will go up.
User could enter a wallet address of the referrer. The referrer will receive NFT for each ticket user bought. This NFT also helps them to get a discount when buying a new ticket.
For a referral to be successful, the referee needs to fill in "Referral Code" blank with the referrer's wallet address. User could not change the referral address after it's entered into the system.
Referral reward would be a proportion of ticket price, and it could be changed at any time.
Ten minutes after round expiration, if result of the round could not be calculated due to problem of Chainlink Oracle, the round become invalid and users could claim their fund.