Predict x Venus for Capital-efficient Markets
We launched Predict with a vision of eliminating wasted capital in prediction markets.
What do we mean by wasted capital?
The idea that funds are effectively locked until market resolution, due to a 1:1 collateral requirement when opening positions.
Not a bad day’s work, but it comes with massive opportunity cost: for your 1.25x, your $10,000 has remained idle for an entire year, unable to earn any yield during this time.
Our research suggests that there is over $680m in capital tied up in this manner, trapped in prediction markets across chains.
In the era of DeFi, we refuse to accept this as reality. And that’s why we’re partnering with Venus.
What is Venus?
Venus is a BNB-based money market protocol renowned for its composability and an impressive suite of DeFi tools trusted by the likes of Binance, Trust and MetaMask.
At its core, it acts as an algorithmic lending/borrowing platform, dynamically adjusting interest rates to unlock yield for users. With a USDT market size of almost $300m at the time of this writing, Venus is perfectly equipped to support Predict in its latest and greatest iteration.
Today, Predict makes up approximately 2% of its USDT market, with almost $6m staked.
Solving for Capital Inefficiencies
On Predict, your capital is now put to work the second you open a position in short-term markets. All USDT collateral is deposited into a decentralized money market (courtesy of our new partners), where it generates yield. In other words: your trapped capital is no longer trapped — it works around the clock, even while deployed!
Rollout has already begun on short-term markets, and is being steadily scaled up to accommodate all markets and positions.
Soon, you’ll be able to claim your yield.
Another Piece of the Yield Puzzle
With Venus on-side, we take another critical step towards our vision of fully capital efficient markets. We’re working towards providing users with the ability to borrow funds to open new positions (creating a synthetic leverage loop), or to place them into liquidity pools for our future products.
Turn your convictions into cash on BNB's favorite prediction market.