Before Better’s official launch, we got the chance to partake in an AMA with SakeSwap, here’s a recap of what was said during the AMA
— Kanpai Sake: On behalf of the SakeSwap team I’d like to welcome you all to our AMA session on Better which will do ILO on SakeSwap tomorrow.
We are glad to have Mars here for the Better AMA.
1. Kanpai Sake: Can you tell us more about Better and what’s its vision and mission?
- — Mars: Better’s non-destructive mechanism allows no participant to lose principal, while users who make correct predictions can split the prize money; And through the global liquidity to achieve “everything is predictable”; Introduced IBO first prediction issue and a variety of assets to pledge functions. Better is more than just a prediction market platform. Better is about building an entire ecosystem of prediction market tracks.
On its own, Better is a decentralized Lossless Prediction Market that aims to be the leading prediction market in the blockchain industry, making everything predictable.
Better puts its users’ money into lending or yield aggregator agreements such as compound interest, YFI, and uses the proceeds as a bonus across its predictive market platform. After the prediction, the platform will automatically distribute the bonus based on the user’s prediction results and the predicted voting weight on a regular basis.
No matter whether the user’s prediction is correct or not, all the user’s principal can be withdrawn at any time without any loss.
2. Kanpai Sake: How does Better work?
- — Mars:
1) The principal invested by users in the prediction market is managed by the smart contract and stored in the Compound or Yearn and other third-party lending and financing agreements.
2) The income generated by the third-party lending and financing agreement is used as the overall bonus pool of the forecast market, and the weight of bonus allocation between different predicted events is decided by the platform governance token holders by voting.
3) The user predicts to bet an event, and the party with the correct prediction will distribute the bonus roughly in proportion to the pledged capital, while the party with the wrong prediction can get back its principal normally without any loss of principal.
4) The outcome of the predicted event will be provided by a third party trusted predictor, and if there is a dispute, the platform governance token holder will vote on the decision.
5) The creation of new predicted events is determined by the vote of the users who hold the platform governance token.
6) Products will be multi-chain deployment, including Ethereum, BSC, HECO, OKExchain and other public chains.
7) 3% of each bonus pool will be used to repurchase platform governance tokens, and the repurchased governance tokens will be governed by the vote of the community DAO.
8) 7% of the bonus pool of each period will be transferred to the next period and will not be distributed in the current period.
3. Kanpai Sake: So how can we ordinary users participate in lossless prediction?
- — Mars:
Users pledge funds to receive certificates of deposit interest, known as LP Tokens. LP Token will automatically produce the corresponding prediction tickets in each prediction market, without the user manually pledgings. Tickets = “pledge money value * pledge time”, similar to the Defi mining mechanism. But when the predicted event ends, the tickets for the expected event are automatically cleared.
Users use Tickets to make a prediction bet on an event, and all Tickets are automatically used each time they participate in a prediction. The result of the bet before the prediction cutoff can be changed, but the result cannot be changed after the cutoff time. If the prediction is correct, the bonuses will be divided according to the proportion of tickets that have been bet. If the prediction is wrong, you don’t get a bonus, but you don’t lose any principal.
When the user exits, the LP token is used to withdraw the funds pledged.
4. Kanpai Sake: If I am the first to make the prediction, will I suffer more than those who are later to make the prediction?
- — Mars:
We thought about that mechanically as well. The earlier users bet, the more uncertain their chances of winning. In order to motivate users to make predictions early, rather than waiting until the end of the event when the outcome of the prediction might be obvious, the system sets up an “early bird incentive factor”. The “early bird incentive factor” is proportional to the time between the user’s bet and the end of the predicted event, a simple linear function of one variable. The earlier the user bets, the bigger the coefficient. When the winning bonus is allocated, the “actual number of Tickets” will be multiplied by the incentive factor to serve as the final “split number of Tickets”.
5. Kanpai Sake: That sounds like a lot of fun, but you know there are a lot of predictive products out there like Augur, Gnosis, and Pooltogether, the lossless lottery. So what’s Better about it?
- — Mars: Here we talk about Augur and Gnosis. First of all, we have non-destructive mechanisms: users pledge money to participate in the prediction market, while Better agreement places assets pledged by users to Compound or YFI or other loan financing agreements, and only part of the revenue is used as a bonus for predicting all the predicted events in the market. Forecast bonus is divided among all the correct predictions, even if the prediction is wrong, the user’s principal will not be lost. Nondestructive forecasting can help reduce the regulatory risk of the project, a non-destructive mechanism similar to Pooltogether, another non-destructive lottery project on Ethereum.
At the same time, we compare with Pooltogether. Although both of them are in lossless mode, due to the statistical probability model of lottery, in the long run, the financial return of users who participate in Pooltogether must be in direct proportion to the proportion of their funds. This means there is no difference between putting it directly into a Compound or other financial agreement.
In the lossless prediction market, users can play their subjective judgment, and the financial return they get will be related to the proportion of capital and the accuracy of their predictions. Most people tend to think they are smarter than the average person, and therefore think their predictions are more accurate. Based on this characteristic of human nature, more people can be encouraged to participate in the lossless prediction market.
In the later stage, we will support third-party bonus sponsorship, create a new token distribution/fundraising model IBO (Initial Bet Offering), and open the third-party partners to predict the bonus pool. By providing a developer platform for more developers, Better aims to become the largest prediction market in the blockchain space.
6. Kanpai Sake: As you have said so much, the highlight of our products is the true lossless prediction. Then I would like to know about our consideration of the liquidity of our products.
- — Mars:
In fact, the liquidity of each product is the most concerned issue for users, and we want to solve the global liquidity (to achieve “everything is predictable”), which is also to solve the biggest problem plaguing the prediction market industry, namely the low liquidity of the long tail market. The interest generated by the user’s pledged funds is transferred to the total bonus pool of the whole prediction market. When the user participates in the prediction bet, the actual counter party is the total bonus pool of the prediction market rather than a single peer, or users who only participate in a predicted event (peer-to-single pool). After pledging the assets, the user gets the right to participate in the entire prediction market, which is equivalent to a full-room pass in a playground, and can participate in betting on all the predicted events. If the user does not participate in a prediction event or the prediction is wrong, it is equivalent to automatically give up the prediction event bonus share right. Forecast participation rights are not consumed on each forecast bet and are only used to record the user’s forecast weight. Users do not have to buy or sell forecasts and do not have to consider any liquidity risk.
7. Kanpai Sake: Through today’s AMA, we learned about the product Better, and we also learned that Better has received angel round investment from NGC, Chain Capital and Kirin Fund.
What are you looking forward to in the next few years for the development of Better and Blockchain?
- — Mars:
We will support third party bonus sponsorship and create a new IBO (Initial Bet Offering) model in the future. The predicted bonus can not only come from the interest or financial income obtained from the user’s pledged funds, but also accept the bonus sponsorship from external third parties (including the third-party project party’s own tokens). The third party can promote and promote the forecast market through the way of prize sponsorship, attract early seed users, and distribute tokens. At the same time, it supports the exchange of third-party project party tokens for the original bonus of the predicted event, so as to help the project party raise funds. Users who predict correctly can get the project party tokens (lossless investment).
Provide automatic predictive bet function. In order to facilitate some users to pledge their funds, they do not need to take the initiative to participate in the prediction bet, and provide automatic prediction function.
It also provides a developer platform that allows developers to create their own independent lossless prediction market using the Better protocol. Independent-lossless forecasting markets take users’ savings and provide a prediction function for specific events, and those who correctly predict the market can divide the prize money between them. Independent lossless prediction markets created by developers themselves, which do not participate in the allocation of the platform’s total bonus pool, can be divided into “private pools” and “public pools”. “Private Pool” allows only whitelist users to participate, “Public Pool” allows all users to participate. The Better protocol will provide a variety of underlying revenue strategies for the independent lossless forecasting market, including Compound and Yearn protocols.
As a simple example, when multiple divisions of a company are competing for a performance target, the event can be set up as a lossless prediction market to predict which division will win. Employees in each department put money in to bet on their own department. Those who predicted correctly would split the prize money.
We will also combine with NFT to generate NFT from the prediction results, which will be randomly airdropped to the users participating in the event prediction. NFT will show the dynamic trend of group opinion over time in a predicted event.
Better can really make lossless prediction be used in everyone’s life and increase the fun of life at the same time. I hope more friends can join our community on Telegram and Discord, follow our Twitter and subscribe to our Medium channel. To get the latest information on Better.