TRON is upping its game, introducing a first-of-its-kind decentralized prediction market network to its ecosystem. Thanks to a recent partnership agreement between TRON and Prosper, the cross-chain prediction market will come to the smart contract network, allowing for access to liquidity across all chains that Prosper is interoperable with.
This partnership has many layers of benefits, with additional liquidity access and yield generation for TRON users just the tip of the iceberg. TRON’s new DeFi application alone is cause for celebration for TRX holders, but Prosper is no ordinary application.
Prosper Is the Evolution of Prediction Markets
Prediction markets have been around for a while, utilizing the collective knowledge of the crowd at large to predict the outcome of events with high accuracy.
Traditionally, these legacy markets would charge a notable fee for users, something decentralized predictions markets thought they could solve. They did solve this problem, but took on a whole new set of problems along the way.
The biggest drawback to these defi predictions markets is that they suffer from a major lack of liquidity. Even on the most popular network Ethereum, prediction markets could not drum up enough crowd participation to effectively predict the outcome of events.
With this problem in mind, Prosper developed a cross-chain liquidity platform that allows for easy integration into different chains. By making Prosper accessible on different blockchains but with a single pool of liquidity, the network can draw in enough volume from fragmented markets to offer more reliable and robust predictions.
With TRON being one of the most widely used decentralized smart contract platforms in the space, the integration should work to the benefit of both projects.
Introducing TRX Into the Prosper Ecosystem
Following the integration, TRX will be made a base asset on Prosper, allowing for inter-chain trading across different blockchain ecosystems. Using Prosper’s intuitive platform, TRX holders can also use their cryptocurrency to predict the outcome of events and get rewarded if they are correct.
Beyond gambling, Prosper provides a very powerful hedging tool for traders to utilize. To protect your position on an asset, you can place a prediction for the opposite price movement you expect, reducing your losses in case your price prediction ends up being wrong.
Prosper also offers a lot of protection for TRON users who decide to use its platform, creating an insurance pool of funds to repay users if there is a hack or malicious event that results in the loss of user funds or platform holdings. This should incentivize users to participate on the platform, in confidence that Prosper will protect their funds even under the worst circumstances.
Justin Sun, TRON Founder and CEO of BitTorrent, summed up the new partnership commenting, “TRON’s DeFi ecosystem is growing, and we are excited to be collaborating with Prosper to bring non-custodial, cross-chain prediction market and hedging to our mainnet. Partnering with the top DeFi projects is integral to TRON’s initiative to be All In on DeFi and is contributing to the meteoric rise of our booming DeFi ecosystem.”
This article first published on coinquora.com
