Another example – Polymarket#

• Polymarket is a prediction markets defi app created using smart contracts
• It is effectively a betting app – you place a bet on an event
• There are other prediction markets apps (Kalshi, for instance), and they are just an example of how easy it is to get a multi-billion business working in De-FI

Smart Contracts in Prediction Markets (e.g., Polymarket)#

Bet Placement:#

• Smart contract creates a market for “Washington Capitals winning Stanley Cup?” with “Yes/No” outcome tokens
• Bettors deposit crypto (e.g., USDC) to buy “Yes” shares at market price (e.g., $0.40 = 40% chance), locking funds trustlessly in the contract—no intermediary needed.

Outcome Resolution:#

• Oracle (e.g., Chainlink/UMA) feeds an official NHL result to contract;
• if Caps win, “Yes” = $1 (auto-redeem), “No” = $0—verifiable, tamper-proof data triggers resolution instantly.

Automatic Payouts:#

• Contract calculates and sends winnings directly to winners’ wallets (e.g., $0.60 profit per $1 bet on “Yes”); full transparency on-chain, no disputes or delays