Leveraged trading for Polymarket prediction markets arrive to subdued initial open interest
The post Leveraged trading for Polymarket prediction markets arrive to subdued initial open interest appeared on BitcoinEthereumNews.com.
Leveraged Prediction Markets for Polymarket betting have gone live on Polygon mainnet through the D8X exchange. Front ends such as FreelyPerps, OctoFi, and DefiSaint allow traders to interact with the markets through their crypto wallets. Users can place leveraged bets on events like the 2024 U.S. presidential election, where the current mark price for Donald Trump to win is 0.4893 with an open interest of 30 TRUMP24 contracts. Another available market is the San Francisco 49ers winning the Super Bowl in 2025, featuring a mark price of 0.1062 and an open interest of 10 SUPBWL49 contracts. The modest open interest, with a maximum leverage level of 2x, contrasts with the $1 billion in volume in the Polymarket spot market. Other protocols, such as SynFutures, dYdX, and Injective, are also reportedly launching or planning leveraged prediction market products. SynFutures launched its leveraged prediction markets earlier this month and has acquired 24,700 Trump contracts to date. The funding rate is -0.0100%, but there has been just $245 in volume over the past 24 hours. The potential opportunity for prediction market derivatives is obvious due to Polymarket’s 2024 success. However, the question remains as to whether the accessible user experience of Polymarket’s platform is driving the growth or the nature of the markets themselves. The future of the derivatives side of this market will rely on being able to entice users to migrate away from Polymarket’s front end. What is D8X exchange? D8X, an institutional-grade decentralized exchange for derivatives, addresses the challenge of managing risk in prediction markets—which resolve to either 0 or 1 depending on the outcome—by employing a system of dynamic leverage, fees, and slippage. This approach ensures system stability from a risk perspective. “Our Leveraged Prediction Markets are an entirely new product. We are huge fans of Polymarket and are thrilled…
Filed under: News - @ September 27, 2024 11:22 am