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Crypto Markets

1. Overview​

Crypto markets in Panana Predictions allow users to predict short-term price movements of cryptocurrency pairs. These markets are designed for fast-paced, high-frequency predictions where users can earn rewards based on the accuracy of their forecasts.

2. Market Creation​

  • Crypto markets are created dynamically as soon as the first user participates in the market.
  • There is no pre-determined list of markets; new markets are continuously formed based on user activity.

3. How Predictions Work​

  • Crypto markets operate in predefined periods of 6 minutes.
  • Users always predict on the next available period.
  • Once a period starts, no further predictions can be made for that timeframe.
  • Users can make predictions on supported trading pairs, such as APT/USDT (additional pairs may be introduced in the future).
  • The market functions as a pool-based system; all users who predicted correctly share the winnings proportionally to their input in the winning pool.

4. Market Lifecycle​

  • Market Entry: Users enter predictions by choosing an outcome before the period starts.
  • Trading Phase: No further entries once the period begins.
  • Resolution: At the end of the period, the market outcome is determined.
  • Claiming Rewards: Users who predicted correctly can immediately claim their winnings.
  • XP Rewards: All participants earn $XP tokens, regardless of whether they win or lose.

5. Market Resolution​

  • Crypto markets resolve automatically using Pyth oracles, ensuring accurate and decentralized price feeds.
  • Users can claim their rewards as soon as the period ends.

6. Risks & Considerations​

  • Market Volatility: Crypto prices can be highly volatile, affecting predictions.
  • Smart Contract Risks: While the system is decentralized, users should be aware of potential risks in smart contract execution.
  • Liquidity Risks: Users must be aware that funds are locked for the duration of each prediction period.
  • Risk of Permanent Loss: Users must be aware that they will loose all their funds if they predicted the wrong outcome.
  • Regulatory Compliance: Users are responsible for ensuring they comply with applicable regulations in their jurisdiction.

7. Fees​

  • No fees for market creation or participation.
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Fees are not yet defined and may change at any time during the market's beta phase.

8. Example Use Cases​

Example 1: Predicting APT/USDT Price Movement

  • Alice, Bob, and Charlie enter a prediction for APT/USDT, each betting $100.
  • Alice and Bob predict that the price will go up, while Charlie predicts that the price will go down.
  • When the period ends, the price is higher than at the start.
  • The total pool is $300 (Alice: 100,Bob:100, Bob: 100, Charlie: $100).
  • Since Charlie was on the losing side, his $100 goes to the winning pool (minus a 3% performance fee, fees are subject to change).
  • The fee deducted is $3, leaving $97 to be distributed to Alice and Bob.
  • Since Alice and Bob contributed equally, they each receive $48.50 in winnings, plus their initial $100 stake, totaling $148.50 each, as well as $XP tokens for participation.
  • Charlie loses his bet but still earns $XP tokens for participation.

Crypto markets in Panana Predictions offer a fully decentralized and fast-paced way to engage in short-term crypto forecasting while earning rewards!