PredictHub: Explained Like I'm 5

If you're new to decentralized prediction markets, PredictHub is the perfect platform to begin with. Users can deposit USDC to participate and receive shares, all settled securely on-chain. You have the flexibility to choose different order types, such as market or limit orders, depending on your trading strategy.

Unlike gambling model, PredictHub allows users to enter or exit a market at any point before the final outcome is determined. Share prices fluctuate in real-time based on market demand, reflecting the collective prediction of an event's likelihood. Just like any tradable asset, you can sell your shares before the event concludes to lock in profits. Once the event is resolved, those holding shares of the correct outcome are paid 1 USDC per share, while the value of shares held by those who predicted incorrectly drops to zero.

PredictHub offers two types of markets

• Single Multi-Outcome Markets: These markets involve straightforward scenarios with multiple potential outcomes for a single question. For example, "Will Bitcoin ETF flows be positive today?" is refreshed daily, offering two possible outcomes: Yes or No.

• Mutually Exclusive Binary Markets: These break down more complex scenarios into multiple yes/no questions, each focusing on a specific outcome. For instance, the question "Which Catcoin will reach a $1 billion market cap first?" can be broken down into separate questions for each candidate, such as "Will POPCAT be the first Catcoin to hit a $1 billion market cap?" or "Will MOG be the first Catcoin to hit a $1 billion market cap?", each offering two possible outcomes.

PredictHub operates on a hybrid execution model, where order matching happens off-chain via a network of operators, while all bets are settled on-chain, ensuring an immutable and transparent record of market activities.

To ensure transparency and accuracy in determining market outcomes, PredictHub integrates the UMA Oracle. For instance, when an event concludes—such as predicting "Will Bitcoin ETF flows be positive today?"—PredictHub queries UMA Oracle to retrieve real-world data from trusted sources. UMA Oracle operates in a decentralized manner, ensuring that outcomes remain free from third-party interference and that all data is secured under the protocol's stringent guidelines.

If the data provided by UMA Oracle is undisputed, the outcome is confirmed, and rewards are automatically distributed to users with correct predictions. In the rare case of a dispute, UMA enables a decentralized resolution process, maintaining fairness and integrity throughout the market's operations.