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Prediction markets are booming — bridging the gap between trading, forecasting, and real-world events. In this video, we explore the top three platforms shaping the future of event-based finance — and how each one gives traders a unique edge in the $100B global information market.

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Transcript
00:00Let's talk about the top three prediction markets to watch as we are heading into 2026.
00:06We've seen the rise of prediction markets this year.
00:10Prediction markets, for those that don't know, let traders buy and sell contracts
00:15whose prices reflect the crowd's belief about whether certain events will occur, right?
00:20So we'll be looking at some of the top platforms that are really heavy into these niches
00:26along with their mechanics, their incentives and their unique features that actually distinguish them.
00:31So make sure you check out the links in the description.
00:33Polymarket is the top one on our list.
00:36There's a peer-to-peer prediction market built on Ethereum and it doesn't act as a house, right?
00:41Instead, traders actually place, limit all market orders against each other
00:46and the price of a contract reflects the probability of an event occurring
00:51and some of the things that really are important to note about the mechanics
00:56of how polymarket works, right?
00:58It's effectively at launch, there are no shares, initial pricing emerges
01:03when matching yes and no limit orders equal a dollar, right?
01:09So which means the first pair of shares if traders are able to place limit orders
01:14specifying a maximum price on market orders, which is immediate execution, right?
01:20So there are no platform fees on polymarket, rather, for trading or deposits or withdrawals.
01:28So it's very interesting and the outcomes are actually settled.
01:32Using universal market access, almost optimistic oracles and users can propose a result with a bond,
01:41right?
01:41If I'm challenged, holders of winning shares receive a dollar while losing shares are worth zero.
01:49So these disputes can actually trigger an arbitrated vote or a 50-50 resolution if the result remains unknown, right?
02:00And this is quite important also to bear in mind that the incentives themselves,
02:06when you look at polymarket, they actually pay the holding rewards, I mean, pays holding rewards, right?
02:12Currently, it's about 4% annualized to participants who hold positions and liquidity rewards to users
02:21who post limit orders near the market price, right?
02:26So user experience, there are no minimum or maximum trade sizes, large orders may move the market.
02:34So advanced traders consult the order book depth, right?
02:38And the platform has cultivated a community around news and events,
02:43though it actually does operate in a kind of a regulatory gray area.
02:49Polymarket's on-chain design itself also and the lack of trading fees attract crypto enthusiasts, right?
02:57Resolution relies on crowd arbitration and some jurisdictions restrict access to real money markets as well.
03:05The next one to look at is Kaoshi, which is a full first, I would say,
03:11fully regulated prediction market in the US operating as a designated contract market, right?
03:16Under the supervision of the Commodities Futures Trading Commission, CFTC,
03:21which gives participants a legal certainty, at least, you know, when you think about the event contracts,
03:26traders, you know, can buy contracts, right?
03:29That pay a dollar if an event occurs or zero otherwise, right?
03:35So prices range from zero to one dollar, representing the market implied probability.
03:41Categories span weather, kind of macroeconomic indicators and so much more.
03:47And when it comes to the regulation, obviously rigorous audits as well, secure custody, strong customer protections.
03:56Kaoshi actually emphasizes transparency, aiming to kind of democratize access to information markets as well.
04:02When it comes to the fees with Kaoshi, they charge a small transaction fee on expected earnings,
04:08plus a make-a-fee for resting orders, and it may actually adjust pricing for special events as well.
04:15So use cases, the platform definitely positioning itself as an event contract platform,
04:21as, you know, kind of tools for hedging uncertainties, applying domain knowledge, for example,
04:26arguing that trading on event outcomes does offer more precise exposure than stock properties.
04:34For example, allowing people to kind of hedge risks, whether it's weather for travel businesses or policy changes for farmers,
04:40anything like that.
04:41So combining the clear rules, the CFTC oversight, the simple one dollar payout structure,
04:48Kaoshi kind of appeals to that mainstream and institutional user seeking kind of a compliant way, right?
04:55And then the third one is Myriad, which is a decentralized platform built on Arbitrum,
05:03designed to make prediction markets ubiquitous instead of hosting a central order book.
05:09The team embeds kind of markets directly into news articles, social feeds,
05:13turning stories into interactive trade or questions.
05:16Some of the key features, you know, obviously the blockchain infrastructure that they're using.
05:20Myriad here using Arbitrum to reduce fees and prove, you know, better scalability as well.
05:29Introducing the ERCPRED, a specialized token for, you know, ERCPRED basically for collateralizing your positions.
05:39And then you also have markets covering crypto, sports, politics, pop culture,
05:44integrating kind of predictions into content as well, reaching kind of casual users who may not visit a dedicated trading site, right?
05:54So managing user experience is very key for them.
05:56The platform itself actually employs account abstraction also,
06:00so users can sign and trade without managing a crypto wallet,
06:03creating a Web2 flow like that helps kind of attract users.
06:07They've got over 400,000 users, right?
06:09And I think they got those in the first month actually.
06:13So market mechanics, very interesting as well.
06:16Events kind of resemble binary options.
06:18Each contract pays the $1 if true or nothing at all,
06:22if otherwise prices are reflecting a probability, right?
06:26The blended Oracle and dispute resolution system,
06:29they're aiming to ensure kind of LIBOR outcomes as well
06:32through regulatory classifications and all that sort of stuff.
06:36So, you know, if you want to know which one is the best platform for you,
06:39you know, you have to think about kind of what you value,
06:42whether it's regulatory clarity, predictable fees.
06:46Obviously, Kashi offers the most secure option for the centralized low-fee environment.
06:51Polymarkets stands out.
06:53Myriad obviously offering, focusing on that ease of use,
06:56and also like social integration appealing to more casual users as well.
07:00And yeah, I mean, these are the top prediction markets.
07:04Let me know what you guys think and which ones you've played around with.
07:08Like, share, subscribe to the notifications.
07:10See you guys.
07:11Peace.
07:11Welcome to the galaxy's favorite spot to put money down on planet Earth.
07:18It used to just be sports.
07:20Al, the whole Don Rock is fair game.
07:23This guy just struck gold on a celebrity gender reveal.
07:27Those gravity hogs just lost it all on the wrong dancer.
07:32And Kyle, all in on global warming.
07:35But that's Earth.
07:36And with Kashi, you can trade on all of it.
07:40So if you're not sure why, you're going to trade on all of it.
07:47So if you're not sure why, you're going to trade on your list.
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