AlgoMarket

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Inspiration

I’ve always been really intrigued by how prediction markets work, especially platforms like Polymarket. They’re just so fascinating!

What it does

AnonMarket is a hybrid decentralized prediction market built on the Algorand blockchain. Anyone can create a market, and other users can buy "Yes" or "No" shares based on whether they think a specific outcome will happen or not.

When a market is resolved, users who hold the correct outcome tokens can redeem them for USDC. They also have the option to sell their shares back to the market before it resolves. The shares are redeemed $1:1 Share

How we built it

Building AnonMarket has been quite the journey. One of our first challenges was figuring out the right pricing formula for the outcome tokens. We explored both CPMM and LMSR models. While CPMM seemed like a great fit for Algorand, it came with a major drawback, high slippage. That’s why we ultimately chose LMSR. It offered more consistent pricing and was much easier to implement off-chain.

Challenges we ran into

We ran into quite a few challenges along the way, from figuring out the right SCALE value to use in the smart contract, to designing a clean and intuitive UI that fits the project’s vision. Each step pushed us to think deeper and iterate quickly.

Accomplishments that we're proud of

I’m especially proud of the escrow contract, it’s hands down the highlight of the entire project. It ties everything together and really showcases the power of smart contracts in a prediction market.

What we learned

One of the biggest lessons we learned is that no matter how tough things get during the building process, you have to keep pushing forward. Progress often comes from persistence.