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  1. Home
  2. /Glossary
  3. /Prediction Market
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defi

Prediction Market

A market where people trade contracts based on the outcome of future events.

Definition

A market where people trade contracts based on the outcome of future events. If you think something will happen, you buy 'yes' shares. If it does happen, each share pays out $1. The share price effectively represents the crowd's estimated probability. Polymarket and Augur are crypto-native prediction markets.

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Related Terms

Polymarket

A decentralized prediction market where you can bet real money on the outcome of real-world events like elections, sports, and crypto prices.

DeFi (Decentralized Finance)

Financial services built on blockchain without traditional intermediaries.

Speculation

Buying assets hoping to profit from price changes rather than fundamental value.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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