This week we talked about our platform’s liquidity, the types of predictions, the features of polar tokens, and the difference between centralized and decentralized prediction markets. Now let’s sum up.
đź“ŚLiquidity on Polars
On the Polars platform, the users add liquidity not to an external event but to a pair of polar tokens Black and White. The user who adds liquidity to the Liquidity Pool does not bear any risks at all. On the contrary, working with the Trade pool carries some risks. So, to motivate liquidity providers, we made the Trade pool 1,5 faster than farming in the Liquidity Pool.
Soon we will provide the opportunity to run an unlimited number of Trade pool and Liquid pool pairs for each particular type of event.
đź“ŚTypes of prediction
🔶Inductive
Predictions are generated by projecting past events into the future. However, the predictor does not analyze the past events and the reasons why they happened this or that way — he only relies on statistics and patterns of the past.
🔶Deductive
The prediction bases on the conclusion of logical consequences following from the hypothesis. This type does not predict events much — it rather confirms or denies the reliability of the hypothesis.
🔶Abductive
This type provides that the prediction is formed on the patterns of the past but implies more plausible predictions. Based on the interpretation of patterns in the past, they obtain prediction that is more plausible than probable.
đź“ŚPolar tokens
There is pair of polar tokens on the Polars platform — Black and White.
Their prices are interconnected and change after each event. So, for example, if the price of the White token rises by 5 cents, then the price of the Black token falls by 5 cents and vice versa.
The price for White and Black tokens differs after each event in Trade Pool and Secondary Pool until it comes in line creating permanent arbitrage opportunities.
If the user places White and Black tokens in Liquid Pool, one becomes a liquidity provider and receives rewards.
We are going to introduce the opportunity for governance POL holders to create pairs of polar tokens independently soon.
đź“ŚDecentralized vs centralized prediction market
Both types of prediction markets have the main common feature — the accuracy of predictions. And both of them have the same sources of uncertainty, such as liquidity and other risk factors that market participants consider when making forecasts.
Centralized markets lack transparency, making it difficult to believe they don’t impact the result, and this uncertainty pushes users away.
Decentralization of the prediction market made it transparent for the users and allowed everyone to invest and earn.
Government censorship can’t affect a decentralized market in any way, so users can create a prediction market for absolutely any external event.
Predict with Polars!
__
