Introduction

This part introduces a decentralized prediction markets protocol designed to offer continuous liquidity, transparent pricing, and accurate event resolution. Leveraging Central Limit Order Books (CLOBs), the protocol ensures efficient trading and market-making. A robust oracle system and comprehensive risk management mechanisms safeguard market participants and the integrity of trades.

Prediction markets enable participants to bet on the outcome of future events by creating, trading, and resolving markets based on real-world occurrences. Traditional prediction markets face challenges related to centralization, inefficiency, and illiquidity. Our protocol addresses these issues using decentralized smart contracts, automated pricing mechanisms, and liquidity provision strategies that enable seamless, transparent, and secure market operations.

By utilising CLOBs, the protocol ensures continuous market participation, competitive pricing, and real-time market resolution. This paper outlines the architecture and technical foundations that enable efficient and sustainable operation.