AugurAugur is a decentralized prediction market platform that utilizes the Ethereum network. In a prediction market, you can bet on the outcome of future events to get monetary prizes.
What is Augur?
Augur is a decentralized prediction market platform that utilizes the Ethereum network. In a prediction market, you can bet on the outcome of future events to get monetary prizes. It runs on the Ethereum Blockchain.
How does Augur work?
You can think of Augur as a platform that allows anyone to create a market for the trading of any event. On the Augur platform you could create a market for any question from “Will the price of Ethereum hit US$10,000 in 2018?” to “Will Trump finish his tenure?”. Alternatively you can also take a view on these events by trading them.
When you create a market, you can set the price for taker and maker and anyone on the platform can either be the taker and maker. When these shares are being traded, they will need to pay a fee and as the market creator, you will receive these fees when the event closes out. If no one trade as the maker, as the event creator you by default would be the maker. Shares are worth anywhere between 0 and 1 ETH. The higher the price you buy a share for, the more likely you believe that the event will happen.
As you can see there are a couple ways how anyone can make money on the platform. One is you act as the event creator and earn the fee. You can also trade on the probability of an event by buying shares low and selling them high. You will also make money if you predicted an event correctly and hold shares when the market closes.
Payout = Number of shares * Price / Number of ticks
The native token of Augur REP is used for staking when people report the result of an event in the Oracle system. If your report outcome is the same as the majority you will win a staking reward.