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Introduction

Compatibilities

  • Solc version : 0.8.30
  • Chains used : Base, Sepolia Base
  • License SPDX-License-Identifier (BUSL-1.1)

Tesnet

Overview

Protocol allows users to provide liquidity, swap shares and place bets on prediction. Fees collected by activities support the system (vaults) and reward participants. A network component provides additional benefits (not define yet).

Protocole Overview

This diagram illustrates the overall functioning of the protocol, which is structured around several features :

  • 1. Vault (ERC-4626) :

    • Users can deposit USDC into "Vault ERC-4626" representing prediction categories. In return, they receive "Shares X" (tokens representing their share in the vault) and can withdraw their USDC in exchange for their "Shares X".

    • The vault maintain a reserve fluctuating between 2% and 10% of the total value of USDC deposited to cover risks related to predictions (i.e. bookmaker).

    • The vault is fed by USDC generated from fees collected on prediction gains (~8%).

    • The global vault global is also fed by USDC generated from fees collected on prediction gains (~2%).

    • ⁇ [To define] : Others fees collected on the protocol (e.g. swap fees, LP fees)


    LP vault Overview

  • 2. Pool balancer (weighted pool) & swap

    • Users can provide liquidity (USDC, Share X) in the "Balancer Pool" to earn fees on swaps and yield on their BPT (Balancer Pool Token).

    • We can collect fees on swap with a HookContract (not define)

    • ⚠️ We need to check whether we need to take any action to make the Balancer Pool accessible on the balancer interface.

    Balancer Fees
    • Yield fees = 10% (on the BPT yield)
      • 50% for balancer
      • 50% for us + LPs
    • Swap fees = 10%
      • 50% for balancer
      • 50% for us + LPs

    The systeme is designed to be open to arbitrage bots that can regulate the pools by connecting to the Balancer API and the vault directly onchain.


    Balancer Overview

  • 3. Predictions

    • User can place bets on "Predictions" in USDC.

      • Differents types of predictions are available (e.g sports, crypto, etc) managed by the centralized protocol?

    • Winners receive their winnings in USDC, minus a 20% fee for the protocol.

    • The amount won is supported by the vault linked to the prediction (or a unique vault?), which maintains a reserve to cover risks associated with predictions.


    Predictions Overview

Admin manager


Predictions Overview
  • ⚠️ We can automate the process :
    • Create a vault when creating a categorie (e.g FootballTeam, BITCOIN, etc)
    • Link a prediction to a category and then to the correspondant vault
    • Create the balancer pool when creating a vault
      • Maybe we should wait a certain balance in the vault before creating the balancer pool

CCIP

The CCIP (Cross-Chain Interoperability Protocol) is used to convert METADEXDAO from the source chain (POLYGON) to TRENDEXONE in the destination chain (BASE).


Predictions Overview