Speedy Markets

Pool based predictions, also referred to as pari-mutuel pools, is a distinct type of prediction market. You are taking a position against other players who have also taken a view on the same event, not against a centralised counterpart that sets odds. There are no liquidity providers as well. All predictions are combined into a pool, and those who make the winning choice split the pool pro rata to their initial position size. The “house” withholds a small portion of the total pool, in our case the $VENO protocol. We call these predictions Speedy as they are of very short duration (up to a few days) and with very quick resolution and settlement.

Since there are no fixed odds when you place a pari-mutuel trade, it is challenging to use any trading strategies. The number of people who traded on an event and the number of people who correctly predicted the winner determine the payouts. Players can only place trades before the event and then once the pool is established no further trading takes place. After the event has concluded, payouts are formally calculated. The pari-mutuel system’s fundamental idea is fairly simple. Similar to traditional sports trading, you make your picks for a sporting event, but you don’t get fixed odds when you take a position. Your “probable odds” will be determined by the current pool’s composition and these probabilities alter as the pool composition alters. Each pari-mutuel trade made on a particular market is added to the specific pool for that market. The total positions are added up following the conclusion of the relevant event. The prize money is divided between the winning players who made the right choice after the house (and in this case the protocol) deducts a commission.

For example, in a hypothetical event that has four possible outcomes, each outcome has a certain amount of money placed in outcomes

Thus, the total pool of capital traded on the event is $500. Following the start of the event, no more positions can be opened. Let’s suppose that after the event it was decided the winning outcome was Outcome 3 with $100.00 total positions. The payout is now calculated, after the commission of the platform is being deducted from the pool. For example, with a commission rate of 8% the calculation is: $500 × 0.08 = $40. This leaves a remaining amount of $460 to be distributed to those who took a position on Outcome 3: $460 / $100 = $4.6 per $1 traded. This payout includes the $1 initial position plus an additional $3.6 profit. Thus, the odds on Outcome 3 are 3.6-to-1, as fractional, or 4.6 as decimal.

In Venue One you can find the Speedy predictions where you can trade initially on sports events and finance. You can see the current pool composition and size and once you click the card you can see the current potential payout as the pool stands currently.

1. Select the desired market and you will prompted to the next page where you can see all the details in regards to the market

2. Choose the desired amount and outcome and press “Take position”

   

You can see the Potential ROI. Remember potential winnings are dynamic and alter whenever new positions take place in the pools by the participants.

When you press “Take position” a pop up will appear with the summary of your transaction

Next step is the approval of the transaction from your MetaMask account. When the transaction is recorded after a few seconds on the blockchain you will receive confirmation.