Hyperbond

HYPERBOND WHITEPAPER

$1 = 1 YES + 1 NO

Prediction markets abide by this invariant. Invariant is important to ensure every YES/NO share is redeemable for $1 during resolution. This invariant is as important as Uniswap xyk invariant. Like Uniswap, this invariant lay the foundation to be built upon.

$1 = 1 BOND = 1 YES + NO.

What happens when we insert a web3 layer between the invariant?

  • Fully transparent market mechanism and player holdings through smart contracts
  • Higher incentivization to token holders then web2 counterparts
  • Autonomous AI agent integration with web3 rails...

    • BOND

  • Stablecoin. Backed by $1
  • Unlocks yield potential for all deposits
  • When players bond to a market, the BOND token is split into 1 YES and 1 NO. When players unbond from a market, 1 YES and 1 NO is combined back into 1 BOND

    • α-BOND

  • Native token. Integrated into ecosystem
  • Can only be mined. Players accrue hashrate that is linked to playing activity
  • α-BOND is farmed once a trade is made or liquidity is added
  • Any treasury tokens are minted with the community
  • Tokenholders earn all protocol fees

    • Appendix: Implementation of Hyperbond v1

    Fund

    • Once market is created, players can add funding liquidity in any ratio to YES and NO, minting FundYES / FundNO tokens.
    • If market meets the threshold, it goes live. Funding liquidity is locked into liquidity pool unitl market ends.
    • If not, all funding liquidity is refunded.

    Live

    • Players mint betYes / betNo tokens. To buy YES token, player converts 1 BOND to 1 YES and 1 NO token, then swaps NO tokens for YES tokens in the liquidity pool.
    • Further liquidity can be added. Liquidity provided during this phase can be withdrawn anytime, and is added accordingly to pool ratios.
    • Liquidity providers earn fees when tokens are traded*
    • Market creators earn LP tokens when liquidity is added**.
    • Protocol earn when player bonds to the market - 1 BOND = 1 YES + 1 NO.

    * Fee calculations used in UniswapV2, to instead take from both sides of the pool (YES and NO), abiding by the invariant

    * Uniswap fee switch turned on

    Close

    • Tokenholders play an increasing role to resolve markets as project move towards decentralization. Approaches include:

      1) proof-of-stake model, where tokens are slashed for malicious votes;

      2) keeper model, where token holders with subject-matter-expert gets a larger say;

      3) jury model, where a jury is randomly selected to decide on the outcome

    Claim

    • Players can claim their winnings based on the resolved outcome
    • Winning YES or NO tokens can be redeemed for BOND tokens at a 1:1 ratio
    • Funding liquidity providers can withdraw their locked liquidity after market resolution