Market Mechanics

Note: Information presented here is relevant to v1 markets only.

As the first experiment in V1, Doxa will facilitate a single prediction market named Didomi for Optimism's Farcaster grant. The market process will be carried out within Farcaster frames, where Warpcast users will have the option to speculate on a single outcome.

Introducing Didomi

Didomi will operate on multi-option contracts with each user having the ability to speculate $DEGEN on a single Optimism grant winner. This mechanism works very similarly to binary options (e.g. YES/NO) where the combined pricing of all available contracts adds to 1. For example, if ‘DarkHorse’ is the favored project to receive a grant then it might lead the market at a price of 42c while all other projects add up to 58c. Contracts are priced as the amount of $DEGEN deposited in a single contract divided by the total amount of $DEGEN deposited by all users into the market. Initial liquidity will be evenly dispersed in $DEGEN across the active grant choices.

Payouts

Upon announcement of a grantee by the Optimism grants council, the market will resolve with the winning users being rewarded a pro-rata share of the combined $DEGEN placed into losing contracts. Winning users can expect to claim their stake within our Farcaster frame. Expect to see an announcement from our official Doxamarket socials instructing this process in more detail.

The Optimism grant review process typically takes around 1 month.

For V1 specifically, it is important to note that users will NOT be able to exit or swap positions until the market resolves.