Nezha — The (r)evolution in prediction markets
Source: Nezha Website
According to Nezha, approximately 89% of participants lose their money when speculating with prediction markets. If you are wondering what prediction markets are, they essentially let people “bet” on the outcome of a future event, thereby creating a new financial derivative. The types of events are potentially limitless, ranging from which candidate will win the next presidential election, to the price of BTC in December 2022, to which country will win the next World Cup.
Punters would undoubtedly enjoy the thrill of participating in prediction markets and others might even be tempted to occasionally dabble in it just for the heck of it. Perhaps what’s holding most of us back is the fear of losing our capital and the risk seems to outweigh the rewards, given that the final outcome is entirely out of our hands.
Well, Nezha seems to have found the solution to that. In their opinion, the fun from prediction markets should not be overshadowed by the fear of losses. Their mission lies in revolutionizing prediction markets and giving back to the community by creating a product that is safe, transparent and fun. How this will work is that the community can stake funds to participate in prediction market games. Using smart yield routing, Nezha then uses the liquidity to create a return across external DeFi protocols. This return is then distributed across prediction market outcomes. Therefore, players are only forfeiting the return generated on their liquidity but not the liquidity itself.
Source: Nezha Medium
Nezha will initially launch two games, with more products already in the development pipeline and will be announced at a later stage. The first game is called Nezha Draw, all you need to do is to secure your tickets and make sure that you check the weekly drawn numbers to see if your numbers match. While you are staking your funds with Nezha, you automatically get weekly tickets to participate in the next draw.
The weekly YieldPot is guaranteed through the community as it is made up of the liquidity rewards from all participants. When you stake liquidity into a Nezha staking contract, they use a secure and transparent smart yield routing to generate a return on these funds. All rewards cumulatively make up the weekly YieldPot. When participating in the Nezha Draw, you will have to predict a series of six numbers. If you are the lucky one to get all six numbers right you will win the YieldPot! There will also be additional prizes should you only match part of the numbers. More information about the rewards and mechanism will be shared closer to the launch date.
Nezha will initially launch on Solana in early 2022. Following which, Nezha will roll out to Cardano to achieve further growth by accessing its over 1m unique users and scalability and interoperability potential. There are also plans to expand to other blockchains to further grow Nezha and the community.
The $NEZ token will be launched to support activities in the Nezha ecosystem. Staking $NEZ will allow access to different tiers, which translate into additional entries into prediction market games and access to special game pools. $NEZ token holders with a significant stake can also apply to become part of the Nezha DAO and may vote on protocol proposals. Part of the platform’s revenues will be used to buy back tokens from the market to create token stability and long-term value creation.
The Nezha team is currently hard at work as they try to revolutionize the future of prediction markets. More details on their IDO and launch date will be announced on their official channels, so be sure to follow them accordingly!