QuickSwap Governance Discussion: Should We Feature a Predictions Market Built by PRDT Finance?
We want QuickSwap to remain a premiere DEX — a place where people can go to earn high yields, trade their favorite cryptocurrencies and have fun while they do it. But having fun isn’t quite as easy in a bear market as it is in a bull. That’s why we’d like to discuss the possibility of featuring a prediction market built by PRDT Finance.
- Bear markets are challenging. QuickSwap needs to increase our revenue so we can continue building. Simultaneously, QUICK stakers need higher APYs to compensate for a volatile market
- We would like to start a discussion about the possibility of featuring a prediction market built by PRDT Finance
- There are many advantages to launching a predictions market
- PRDT Finance has experience building such platforms. They built a groundbreaking market for Venus on BNB along with Niob finance and ApeSwap — just to name a few
- PRDT has already begun building the platform and will be ready to launch it on Monday, June 6th if the community votes in favor
- We value your input, which is why we’re introducing this discussion before conducting a governance vote
- We would like to move quickly and (we hope) pass this proposal so that PRDT can finalize the details of the platform and launch it
- Please read through this entire post carefully before forming an opinion
- Once you’ve read through, visit our Reddit discussion forum to ask any questions and/or discuss with the community: https://www.reddit.com/r/QuickSwap/comments/uz2uqj/governance_discussion_should_we_feature_a/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
Fellow dragons, today we’re introducing a discussion about something that we believe will greatly benefit QuickSwap and the QuickSwap community. We would like to feature a prediction market that PRDT Finance is building. We believe this platform provides many advantages and next-to-no disadvantages for our DEX and community.
What is PRDT Finance?
PRDT Finance is the first fully decentralized cross-chain prediction platform.
It enables users to predict the future price of an asset and get rewarded for their correct predictions. PRDT is available on Polygon and BSC.
Predictions rely on Binance APIs to pull the most up-to-date and accurate asset prices for all crypto markets. PRDT Finance has been dual audited by Certik.
What is a Prediction Market?
Prediction markets are exchange-traded markets created for the purpose of speculating on the outcome of events. Prediction markets rely on crowdsourced information to aggregate beliefs on the probability of an unknown future outcome. Although prediction markets are most commonly associated with political elections and the stock market, they can also be used to speculate on which direction crypto assets are heading and reward those who accurately predict the future.
How would the prediction market work?
Upon placing any bets with PRDT, the user will pay a 3% fee regardless of the outcome of the bet.
The fees will be split as follows:
- 40% of fees collected will go to PRDT for building and maintaining the market
- 40% will be used to market buy QUICK and distribute to stakers in the Dragon’s Lair
- 20% will go to QuickSwap’s Foundation, which we use to fund our development and operational costs
If this governance vote passes, we will provide a detailed tutorial about how it works when it launches.
Please keep in mind that we have no real way of knowing how much revenue the predictions market might bring in. What follows is merely a conservative estimate based on recent data.
Currently, QuickSwap’s volume is lower than normal. Our 24 hour trading volume is approximately $21 million. If 1% of the daily swap volume is played on PRDT
($21 million x 1%) = $210,000
$210,000 x 30 days in a month = $6,300,000
$6,300,000 x 3% fees = $189,000
- 40% to PRDT Finance = ($189,000 x 0.4) = $75,600
- 40% to Dragon’s Lair = ($189,000 x 0.4) = $75,600
- 20% to QuickSwap Foundation = ($189,000 x 0.2) = $37,800
Note: This is a conservative estimate. A previous partner of PRDT with significantly lower volume than QuickSwap did orders of magnitude more than this; however, cryptocurrency is currently in a bear market. It is also possible that the revenue will be significantly lower than this estimate.
Weighing the Pros & Cons
Every decision has advantages and disadvantages. At QuickSwap, we believe that featuring the predictions market PRDT built offers lots of advantages with almost no downside.
What are the benefits of a prediction market?
- Increased user engagement
- Our website becoming more fun to use and appealing to a broader user base
- Increased revenue for stakers in the Dragon’s Lair
- Increased revenue to enable the team to expand
- An extra tool for users
- Stronger partnership with PRDT Finance — a group of veteran builders
- No change to UI/UX for users who choose not to use the predictions market
What is the potential downside?
Essentially, for those who chose not to use the prediction market, there is NO downside to QuickSwap featuring it; however, those who do use the prediction market will encounter some risks, which include:
- The possibility of losing A LOT of money if you make the wrong prediction
- Even though PRDT has been audited extensively, the risk of smart contract failure is always present. Please use with caution and only at your own risk.
Both QuickSwap and PRDT strongly encourage users to do their own research (DYOR) and never speculate with funds they can’t afford to lose.
How would QuickSwap featuring a prediction market affect me?
That’s the greatest part: this prediction market doesn’t have to impact you at all! Because PRDT Finance is building the market, QuickSwap’s development team has been able to focus on improving the new UI, the token split, and other features that you’re going to love. If you don’t want to use the prediction market, you don’t have to. Everything you do on QuickSwap now will remain unchanged by the existence of this market. If the community votes in favor of this proposal, you stand to lose nothing and gain everything.
Make sure you visit our Reddit discussion forum as your favorite team and community discuss this proposal. If the community seems to be on board, we’ll release a formal governance vote in a few days. If that vote passes, we’ll tell PRDT to move forward with the platform’s construction and get it launched on Monday, June 6th.