The Core Problem that is being solved

Traditional prediction markets suck in two ways:

1. Order Book Markets (like a stock exchange)
   • Need constant liquidity
   • Need market makers actively buying/selling
   • Pain in the ass to maintain
2. AMM Markets (like Uniswap, using LMSR - Logarithmic Market Scoring Rule)
   • Need someone to put up a big pile of money upfront (the liquidity parameter b)
   • The creator takes on "bounded loss" - they can lose money
   • Complex math to maintain prices
   • Capital inefficient

DePredict's solution: F**k both of those. Let's separate the accounting from the price discovery.

How DePredict Actually Works

Part 1: The Vault

Think of it like a betting pool:

• There are TWO vaults for each market: YES vault and NO vault
• I pick a side and deposit USDC
• I get a compressed NFT (cNFT) as a receipt

What's in the cNFT:

- market_id: Which market is this?
- outcome_side: YES or NO?
- shares: How many $1 units you own
- stake_amount: How much USDC you put in
- creation_time: When you entered

Example:

• I bet $10 on YES
• I get a cNFT with shares = 10
• If YES wins, each share pays $1
• So I can redeem for $10 + my cut of the NO vault

At settlement:

• If my side wins: You get $1 per share PLUS your portion of the losing side's money