Trading
Last updated
Last updated
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, user funds.
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 $10 trade, the user:
receives a quote of 16.167 YES tokens
has an average price of $0.619 per YES token
causes a price impact of 0.05%
