DeFi Education • 699 implied HN points • 26 Jul 24
- Prediction markets let users bet on the outcomes of real-world events, like elections or interest rates, by creating and trading tokens. This allows for both speculation and hedging against risks in the financial markets.
- Polymarket is a leading prediction market platform that has seen rapid growth, particularly during election cycles. Users can make money by providing liquidity and taking advantage of market mispricings.
- Memecoins and prediction markets serve different purposes for betting on events. Prediction markets offer specific outcomes with sound pricing, while memecoins allow for uncapped upside but carry risks of fluctuations based on popularity.