- PancakeSwap has unveiled a prediction market focusing on the price of Ether (ETH)
- The exchange uses artificial intelligence (AI) to provide base predictions
- The DEX said the move is part of expanding its offerings to users
PancakeSwap is increasing the number of services it offers with the launch of a prediction market that has an AI component. The market focuses on allowing users to forecast the price of Ether (ETH) with AI being on the other side of the prediction, which the exchange’s product manager, Chef Gyoza, said was the only logical step. The prediction market will be powered by Ethereum scaling layer Arbitrum and has a rewards pool of close to $50,000, which will help attract predictors.
Losses Covered 100%
According to an announcement, the DEX disclosed that the AI-based price is powered by Allora, adding that the launch comes with a 9-week campaign.
Predictions will be conducted in 10-minute rounds with winning predictors sharing that round’s allocated funds. During the campaign period, the exchange will cover up to 100% of predictors’ losses after the end of every week.
Predictors can either agree with the AI’s prophecy or go against it, making the process a simple yes/no game. PancakeSwap said that a user will initially see “Follow” and “Against,” with the actual AI forecast being revealed when the user places a bet.
Only $0.034 to Place a Bet
The minimum amount to place a bet is 0.00001 ETH, equivalent to $0.034. Predictions carry a 3% fee charged on each round and which PancakeSwap intends to use “for buyback and burn” and to fund “future marketing and development.”
PancakeSwap is entering the ETH price prediction space when the United States and other countries are expected to declare their stand on spot ETH ETFs. It also comes when popular prediction platform Polymarket is buzzing with activity.
With the crypto space anticipating the arrival of an Ethereum ETF and the United States’ elections fast approaching, it’s to be seen whether PancakeSwap will expand supported predictions to include other cryptos and real-world events.
