Trading

Truemarkets is a binary prediction market, meaning that a market must reduce down to a question with yes/no answers.

Outcomes are priced in real-time based on the free-market perceived odds of various results. They are priced by traders and market makers who provide YES and NO token liquidity.

When a market is resolved, the token corresponding to the correct resolution is redeemable, and the opposing token expires worthless.

E.g.) If a market resolves to YES, then every 1 YES token becomes redeemable for $1, while every NO token expires worthless, and vice versa.

Trading YES/NO tokens is completely non-custodial in Truemarkets. All trading is done directly onchain through Uniswap V3. At no point do the Truemarkets contracts have access to, or control over, the trading of YES/NO tokens.

To predict the outcome for a market, users simply purchase the token corresponding to the outcome they prefer. If a user purchases YES tokens for 50c and the market resolves to YES, the user can redeem their YES tokens for $1 each, effectively capturing 100% profit from the trade (minus fees).

To purchase YES or NO tokens, users simply approve their USDC for spend and place a bet. Directly above the buy button, the trade summary displays the exact quote, conversion rate, and price impact for the trade.

In the image above, for a $300 trade, the user:

• receives a quote of 1502.6 YES tokens

• has an average price of $0.20 per YES token

• causes a price impact of 0.35% and moves the price of YES to $0.21