🎯 Pute - Prediction Market Intelligence Platform


💡 Inspiration

Prediction markets have exploded in popularity, with platforms like Polymarket seeing billions in trading volume. But there's a problem: how do you know which markets to trust?

Some markets are deep, liquid, and reliable. Others are thin, manipulated, or poorly designed. As traders and researchers, we constantly asked: "Is this market worth my attention?"

We built Pute to answer that question systematically. Instead of relying on gut feel, we wanted a data-driven way to evaluate market quality and uncover hidden opportunities.


🚀 What it does

Pute analyzes 100+ prediction markets in real-time and provides:

1️⃣ Trust Scores (0-100)

Every market gets a reliability score based on:

  • 💰 Liquidity depth
  • 📈 Trading activity
  • ⏰ Market maturity
  • 📉 Price stability
  • 📝 Resolution clarity
  • 💹 Bid/ask spreads

Output: Letter grades (A+ to D) so you instantly know which markets are trustworthy.

2️⃣ Opportunity Detection

Automatically identifies:

  • 🔥 Momentum Markets - Significant price moves backed by volume
  • 📊 Volume Spikes - Unusual activity indicating breaking news or whales
  • 💎 Value Plays - High-trust markets with extreme prices (potential mispricings)

3️⃣ AI-Powered Insights

Ask questions in plain English:

  • "What are the most trusted political markets?"
  • "Show me momentum opportunities"
  • "Find undervalued markets"

Get instant, data-driven answers.


🛠️ How we built it

Tech Stack:

  • Hex - Notebooks for data processing, app builder for dashboard
  • Python - Data pipeline and statistical analysis
  • Polymarket API - Real-time market data (100-150 active markets)
  • Statistical Methods - Percentile ranking, z-score normalization, sigmoid curves

Architecture:

Polymarket API → Data Processing → Statistical Scoring → 
Opportunity Detection → Interactive Dashboard + AI Chat

Key Components:

  1. Statistical Trust Engine

    • Built custom scoring algorithms using population statistics
    • No arbitrary thresholds - everything is relative to current market conditions
    • Used scipy for percentile ranking, z-scores, and normalization
  2. Opportunity Detector

    • Analyzes price movements, volume patterns, and trust scores
    • Filters false signals (price without volume = noise)
    • Ranks opportunities by statistical significance
  3. AI Query System

    • Pattern-matching NLP to understand user intent
    • Direct DataFrame querying for accurate responses
    • Formatted markdown outputs for readability
  4. Hex Dashboard

    • 4 interactive tabs: Markets, Opportunities, AI Chat, About
    • Real-time filtering and sorting
    • Clean visualizations with charts and tables

Development Time: ~20 hours (2.5 days)


😅 Challenges we ran into

1. Statistical Validity

Problem: How do you score markets without arbitrary thresholds?

Solution: Used population-relative statistics. Instead of saying "$1M liquidity = good," we use percentile ranking: "This market has more liquidity than 92% of all markets." Adapts automatically to market conditions.

2. Volume vs. Price Signals

Problem: Price movements alone are misleading - a market can move 20% on thin volume (noise) or high volume (real signal).

Challenge: We had to build volume-weighted confirmation to separate strong trends from false momentum.

Solution: Created a volume-weight metric and classified momentum as STRONG (high volume), MODERATE, or WEAK (low volume).

3. WebSocket vs. Snapshot

Problem: Should we stream real-time data or use snapshots?

Decision: Snapshots. For analytical insights (not trading execution), real-time streaming adds complexity without value. Judges care about insights, not millisecond updates.

4. Time Constraints

Problem: 20 hours to build everything - trust engine, opportunity detection, AI chat, and dashboard.

Solution: Prioritized ruthlessly. Built core engines first, then dashboard, then polish. Cut nice-to-haves (semantic models, websockets) to focus on what matters.


🏆 Accomplishments that we're proud of

Novel Trust Scoring Algorithm
We didn't just add up metrics - we used proper statistical normalization (percentiles, z-scores, sigmoid curves). Mathematically rigorous and defensible.

Volume-Confirmed Momentum Detection
Most tools just show price changes. We filter noise by requiring volume confirmation. This catches real trends early.

Working AI Chat Without External APIs
Built intelligent query handling using pattern matching and DataFrame operations. Fast, reliable, no hallucinations.

100+ Markets Analyzed in Real-Time
Processing, scoring, and detecting opportunities across the entire Polymarket landscape.

Clean, Professional Dashboard
Built a production-quality app in Hex with interactive filters, sortable tables, and clear visualizations.

Finished on Time
Delivered a complete, working project with all core features in 20 hours.


📚 What we learned

Technical Learnings:

  1. Statistical methods matter - Percentile ranking and z-scores are far superior to arbitrary thresholds for scoring systems.

  2. Volume is crucial - Price movements without volume confirmation are mostly noise. Always validate signals.

  3. Hex is powerful - The combination of notebooks (backend) and app builder (frontend) makes rapid prototyping incredibly efficient.

  4. Simplicity wins - We almost over-engineered this with WebSockets and complex AI. The simpler snapshot + pattern-matching approach worked perfectly.

Domain Learnings:

  1. Prediction markets vary wildly - Political/economic markets average 82 trust score. Entertainment/celebrity markets average 58. Category matters.

  2. Liquidity is king - It's the strongest predictor of market reliability. Thin markets are easily manipulated.

  3. Trust ≠ Accuracy - A high trust score means the market is well-structured, not that the outcome is certain. Important distinction.

Process Learnings:

  1. Build core value first - We focused on the trust engine and opportunity detection before UI. Right call.

  2. Time-box features - Set hard limits. If a feature takes >1 hour and isn't core, cut it.

  3. Test incrementally - Building in cells let us validate each component before integrating. Saved hours of debugging.


🚀 What's next for Pute

Short-term (Next Month):

🔔 Alert System

  • Email/SMS notifications for high-priority opportunities
  • Custom threshold settings per user
  • Daily digest of top markets

📊 Historical Tracking

  • Track trust scores over time
  • Analyze which markets improve/degrade
  • Validate our scoring methodology against outcomes

📱 Mobile-Responsive Design

  • Optimize dashboard for phone/tablet
  • Quick-check interface for on-the-go analysis

Medium-term (3-6 Months):

🤖 Machine Learning Enhancement

  • Train models on historical market resolutions
  • Predict which markets will resolve accurately
  • Combine ML predictions with trust scores

🌐 Multi-Platform Support

  • Integrate Kalshi, Manifold, PredictIt
  • Cross-platform arbitrage detection
  • Unified trust scoring across platforms

Real-Time Updates

  • WebSocket integration for live data
  • Sub-second opportunity detection
  • Live price/volume charts

Long-term (6-12 Months):

🎨 Advanced Visualizations

  • Network graphs showing market correlations
  • Heatmaps of category performance
  • 3D trust-volume-price plots

🧠 AI-Powered Predictions

  • Use Groq with web search for outcome forecasting
  • Combine news analysis with market data
  • Generate probabilistic forecasts

💼 API for Developers

  • Public API for trust scores
  • Webhook integrations
  • Embeddable widgets for blogs/platforms

🏢 Enterprise Features

  • Custom market monitoring for platforms
  • Manipulation detection systems
  • White-label solutions for prediction market operators

🎯 Vision

We want Pute to become the Bloomberg Terminal of prediction markets.

Just as Bloomberg provides institutional-grade analysis for financial markets, Pute will be the trusted intelligence layer for prediction markets - helping traders make informed decisions and researchers understand market dynamics.

Prediction markets are the future of information aggregation. Pute makes them trustworthy.


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