Pascal Finance

Inspiration

We were inspired to build our decentralized prediction market, Pascal Protocol, after seeing the success of Nate Silver's FiveThirtyEight website and the impact that accurate forecasting can have on a wide range of industries. We saw the potential for a platform that allows users to bet on financial, economic, and political events, and we knew that the transparency and security of a decentralized system would be the perfect foundation. With our prediction market, we hope to empower users to make informed decisions and contribute to the community's collective wisdom. So, we're building this prediction market on Solana to make it fast, secure, and scalable.

What it does

Pascal allows users to trade on the outcome of financial, economic, and political events. For example, a user might place a bet on the direction of the stock market or the winner of an upcoming election. The platform uses a crowdsourced approach, in which users can participate in (and potentially create) markets on various topics. When an event is resolved and the outcome is known, the platform distributes the winnings to the users who correctly predicted the result.

How we built it

We'll be building Pascal using a combination of smart contracts and a user interface (UI) that runs on top of the Solana blockchain.

Smart contracts will be self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The protocol will initially be built upon Monaco Protocol's liquidity network; price events (e.g., equity, oil, crypto asset prices, etc.) will be arbitrated using oracle providers such as the Pyth Network; for arbitrary events (e.g., Will it rain today in NYC?) will be resolved using Human Protocol -- a primitive that verifies manual work on-chain.

The UI is the interface where users participate in markets, place trades, view the results of events, provide liquidity, and potentially create their own markets. It will be built using a modern web development stack, including Next.js, ChakraUI, and Typescript and it communicates with the smart contracts on the blockchain through an application programming interface (API).

Together, the smart contracts and UI make up the decentralized prediction market platform, allowing users to securely and transparently bet on the outcome of a wide range of events.

Potential challenges

We might initially face a shallow depth of liquidity, presenting a hurdle for users to have their orders filled. To address this challenge, we are heavily considering incorporating an automated market maker (AMM) on top of our limit order book to ensure users get their orders filled at the best price.

Built With

• chakra-ui
• mongodb
• next.js
• rust
• typescript