The DeFi protocol recently announced that its predictions market is now available on the Ethereum Layer-2 network Arbitrum. The PancakeSwap’s Prediction Market on Arbitrum will incorporate a price feed powered by Allora, a decentralized AI network.
Users can participate by betting on the AI’s predictions, choosing to either go with it or against it. At the end of each round, participants will receive token rewards from a designated prize pool.
According to the PancakeSwap team, the AI will not bet against users. Therefore, a follow bet indicates that the user trusts the AI’s prediction, while the opposite indicates that the user chooses to rely on their own judgment regarding the price movement.
These tokens are part of the 450,000 ARB grant that the project received through the Arbitrum Long-Term Incentive Pilot Program. The first supported token for this market is ETH, with a 3% fee applicable to the total pool.
PancakeSwap intends to use a portion of these fees in a buyback and burn program, while the remaining funds will be allocated to the treasury for future marketing and development initiatives.