Seer
  • ๐Ÿง™Introduction to Seer
  • Prediction Market Basics
    • ๐Ÿช„Creating Tokens
    • ๐Ÿ”„Trading Tokens
    • ๐Ÿ”ฅRedeeming Tokens
    • โž•Scalar Markets
  • ๐Ÿ˜ตWhy did previous prediction markets fail?
    • โ—พA method other than a prediction market produces the best predictions
    • โ‰๏ธAn article shows a method over performing prediction market
    • ๐Ÿ”ŽIt's not ethical
    • ๐ŸฆRegulatory Attacks
    • ๐Ÿ’งLack of Liquidity
  • ๐ŸชกSeer Solution
    • ๐Ÿ”˜Seer DAO
    • ๐Ÿ‡ง๐Ÿ‡ฎRetroactive Public Good Funding
    • ๐Ÿ‘จโ€๐Ÿ‘จโ€๐Ÿ‘ฆโ€๐Ÿ‘ฆPrediction Market Actors
    • ๐ŸฅšThe Chicken and the egg problem
    • ๐Ÿ’ฐToken Incentives
    • โ„น๏ธInformation Seekers
    • ๐Ÿ“ˆExchange Integration
    • ๐Ÿ’ฆLiquidity Management
    • ๐Ÿ”’Safe Liquidity Provision
    • โžก๏ธPractical Implementation = AMM + Auctions
    • ๐Ÿ’กReasoning
    • โš•๏ธCapital Efficency
  • โš™๏ธApplications
    • ๐Ÿ•ด๏ธPolitical Predictions
    • ๐ŸฒFood and Drugs Market
    • ๐ŸŒMacro Studies
    • โบ๏ธMicro Recommendation
    • ๐Ÿ’ขFutarchy
    • ๐Ÿค–AI Markets
  • ๐ŸคConclusion
  • ๐Ÿ“„Reference
  • App
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  1. Seer Solution

Token Incentives

PreviousThe Chicken and the egg problemNextInformation Seekers

Last updated 1 year ago

A common solution taken by other prediction markets has been for the operators to provide liquidity themselves. However, this has two main issues:

  • The operator is likely less efficient than the open market.

  • In the case of Seer, we donโ€™t have such an operator.

To solve those, Seer will distribute the majority of its tokens through yield farming. Governance will determine the amount of tokens and the applicable time period for eligible markets.

This yield farming model has been shown to be extremely efficient at bringing initial liquidity. It allowed the exchanges curve [11] and Balancer [12] to build their liquidity. It even allowed Sushiswap, initially a simple clone of Uniswap, to at some point even have a higher liquidity than Uniswap [13].

Yield farming may not be sustainable in the long term but can serve to start the flywheel (virtuous circle) while in the long term payments from information seekers and fun traders can keep the system .

Let's see the relation and impact of information seekers present in all prediction markets and token incentives.

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