🤑Earning Mechanism

Expectium is a social finance and information markets platform. Which people will be able to trade on their outcomes about global news and events.

Phase 1

On Phase 1 stage of development, Expectium has a simple mechanism to let people get used to system easier. People will buy shares of the option they forecasts from market which works like ordinary DEX AMMs. Accepted fund to buy option shares is USDC.

When market resolves, which means event result occurs. True options will be redeemed for 1$ USDC, while wrong option worths nothing.

You can sell your shares anytime you want directly to AMM which makes information market like real-world options market. This means it is not close to betting.

How shares calculated?

At the beginning of market, both Happens or Not shares start with same price (0.50$). Initial liquidity providers can provide their USDC with this ratio. Then people will be able to buy and sell shares from liquidity providers like AMM.

Price of shares are act between range of 0 to 1$ which mathematically cant be 1$ or 0$ during the event. After market resolves true option worths 1$ and wrong option worths nothing. Such like options trading.

So if you have 100 Happens shares and market resolves as event happened. You will be able to redeem your shares 1:1 ratio to USDC.

Liquidity Providing

Liquidities for markets can be provided by anyone. Providers need to provide USDC to market which distributed to both options depends on options concurrent prices.

For example: If market initially setup. Both options price are equal, so if provider provides 100$ worth of USDC, then provider gets 50$ worth of Happens share and 50$ worth of Not shares. This ratio will change after users trades such like AMM.

Liquidity providers will earn fees on all trades that made on market. This is called liquidity provider fee. The system is similar to AMM DEXes.

There is total %2.5 fee taken on all trades. Fees distributed like ratios below.

Platform Fee Ratio : 20% (Share NFT holder distribution) Liquidity Provider Ratio : 80%

This means liquidity providers will earn %2 of all trades that made on their liquidity provided market. While providers can remove their liquidity whenever they want, they also earn USDC from this action.

Phase 2

On Phase 2 of Expectium. We aim to change AMM system to orderbook.