Technical Documentation

Contract Architecture

The Prediction Protocol is implemented as a Solidity smart contract utilizing a dual-structure system for market management: proposed markets and active markets. This architecture ensures proper governance and validation of markets before they become active.

Core Data Structures

struct Market {
    string question;
    string subject;
    string[] outcomes;
    mapping(uint => uint) outcomeBets;
    mapping(address => mapping(uint => uint)) userBets;
    mapping(address => bool) hasWithdrawn;
    uint resolutionOutcome;
    bool resolved;
    uint totalPool;
    address[] bettors;
    uint resolutionDate;
    bool approved;
}

Key Mechanisms

Market Proposal Flow

• Requires 1,000 PP Token proposal fee
• Validates resolution date and outcome parameters
• Emits MarketProposed event for indexing

Betting Mechanism

• Implements a 1% platform fee
• Uses proportional payout system based on bet distribution

Resolution & Payout

• Owner-controlled market resolution
• Automatic proportional winnings distribution
• Anti-double-withdrawal protection

Technical Specifications

Security Considerations

The contract leverages Solidity 0.8.0's built-in security features, protecting against several critical vulnerabilities:

Advanced Implementation Details

Memory Management

• Efficient storage packing for gas optimization
• Strategic use of memory vs storage for array operations
• Optimized string handling for market questions and subjects

Event Emission Strategy

// Key Events for External Tracking
event MarketCreated(uint marketId, string question, string subject);
event BetPlaced(uint marketId, address indexed user, uint outcome, uint amount, uint fee);
event MarketResolved(uint marketId, uint outcome);
event WinningsDistributed(uint marketId, address indexed user, uint amount);

Mathematical Model

The payout mechanism implements a proportional betting system where:

Payout = (UserBet * TotalPool) / TotalWinningBets
where:
- UserBet: Individual's bet on winning outcome
- TotalPool: Sum of all bets minus platform fees
- TotalWinningBets: Sum of all bets on winning outcome

Gas Optimization Techniques

Integration Guidelines

interface IBettingMarket {
    function proposeMarket(
        string memory question,
        string memory subject,
        string[] memory outcomes,
        uint resolutionDate
    ) external payable;
    
    function placeBet(uint marketId, uint outcomeIndex) external payable;
    function getAllMarkets() external view returns (...);
    function getProposedMarkets() external view returns (...);
}

Oracle System

Our decentralized oracle network ensures reliable and accurate market resolution through a reputation-based consensus mechanism.

Key Features

• Decentralized network of data providers
• Reputation-weighted consensus mechanism
• Token-based incentive structure
• Real-time accuracy tracking

Technical Implementation

• Secure API endpoints for data submission
• Multi-signature validation process
• Automated reward distribution
• Slashing conditions for malicious behavior