Cross-chain prediction markets are set to become available to users on TRON’s DeFi ecosystem after the blockchain-based platform announced a partnership with Prosper on March 3rd.
Prosper is a non-custodial, cross-chain prediction market and hedging platform relying on binary models for liquidity provision across blockchains, a structure the team argues alleviates liquidity issues, one of the biggest issues currently seen across DeFi prediction markets.
While prediction markets comprised of people speculating on event outcomes or asset prices have long been popular, DeFi-powered platforms have garnered significant attention both in and outside the cryptocurrency world.
The decentralized finance world allows for prediction markers to operate with lower fees than traditional infrastructure as the lack of intermediaries enhances trust and eliminates the middleman. Users interested in enhanced liquidity due to free and open participation in an ecosystem all but free of corruption and manipulation (due to the lack of central authority), find DeFi prediction markets alluring.
Collaboration between TRON and Prosper is expected to permit TRON users to use TRX as the basic prediction token for all features and functionalities on Prosper. TRX holders can also enhance liquidity among prediction market pools by using the coin to maximize yield or hedge. Specific development and integration processes are forthcoming, but TRX price movement predictions are expected to open on other blockchains after the mainnet launch.
TRON founder and BitTorrent CEO Justin Sun remarks partnering with Prosper falls in line with the platform’s focus to be "all in on DeFi."
Prosper’s unique technological approach enables a short-term prediction market with randomized results for custom pools, alongside high APRs and a free maximum insurance fund for liquidity providers. Additional core features include bet insurance, user-owned predictions and options, and fiat integration to promote capital inflow.
According to the Prosper team, enhanced liquidity aids prediction markets in becoming more accurate. The TRON-based prediction market will remain non-custodial and decentralized using JustLink oracle price feeds, a news release details.
"This partnership with TRON is an extension of Prosper’s efforts to collaborate with the biggest players of the DeFi world," co-founder Iva Wisher explains, citing the growth of TRON’s DeFi ecosystem and breadth and activity of the platform’s overall user base.