Drift, an on-chain trading protocol, has introduced prediction markets as part of its expanding suite of products. The Solana-based platform revealed its new predictions market feature in an announcement on Aug. 19.

Drift’s prediction market product will function similarly to other platforms, offering users the chance to bet on the outcome of events such as the U.S. election. However, Drift’s B.E.T goes a step further by integrating decentralized finance.

With Drift’s B.E.T, users can earn yield on their bet trades as the event unfolds and reaches its resolution. Additionally, users can hedge their predictions through “structured bets,” allowing them to go long on a prediction market while simultaneously shorting Bitcoin.

Unlike other platforms that offer prediction trades via the USDC stablecoin on Ethereum and Polygon, Drift supports over 30 tokens, including yield-generating stablecoins and liquid staking tokens on Solana.

Growing Predictions Market

Drift’s announcement of its prediction market on Solana follows the protocol’s unveiling of an earn product and election center in July. The election center allows political meme coin enthusiasts to swap $TREMP and $KAMA meme coins.

Prediction markets continue to attract attention, especially with the upcoming U.S. elections and other significant events around the world. For example, Polymarket currently has more than $624 million in bets on the 2024 U.S. presidential election. As of Aug. 19 at 11:40 am ET, Kamala Harris has recently gained 51% of trades in her favor, while 47% of traders see Donald Trump winning a second term in the November election.

Prediction markets are becoming a significant trend in the crypto space, especially with their potential to integrate decentralized finance elements.

Tips for Beginners

  • Research Thoroughly: Before participating in prediction markets, ensure you understand how these markets work and the risks involved.
  • Diversify Your Bets: Just like with any investment, avoid putting all your funds into a single prediction. Diversify to manage risk better.
  • Stay Updated: Keep an eye on current events and trends that might influence the outcomes of the predictions you are betting on.
  • Use Hedging Strategies: Hedging can help mitigate potential losses if the prediction doesn’t go as planned.

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