🪄Creating Tokens

The first step for a prediction market is to create the outcome tokens. For this we need:

• A question (ex: « Who will win the 2028 presidential election? »).

• A list of outcomes (ex: « Trump », « Biden », « Other »).

• An oracle (here, we’ll use reality.eth [19] with Kleros [18] as an arbitrator) which can answer the question.

• A resolution period consisting of the earliest date the market can settle and the time[1] after which the market is to be invalid if the outcome is still unknown.

• An underlying token, to be used to create the outcome tokens and to be given to users redeeming their tokens (in order to be capital efficient, we can use a yield bearing one such as sDAI or stETH).

People can mint complete sets of outcome tokens by providing underlying tokens. For example, someone can put 1000 sDAI to create 1000 « sDAI if Trump », 1000 « sDAI if Biden » and 1000 « sDAI if Other ».