Copy Prediction Trading
Leveraging Collective Intelligence
Polyquest introduces a unique Copy Prediction Trading feature that allows users to benefit from the expertise of seasoned traders without actively engaging in prediction analysis. This feature leverages the collective intelligence of expert traders on the platform, simplifying the decision-making process for users while providing incentives for experts to perform well.
How It Works
User Deposit & Setup Users deposit their tokens (e.g., $USDC or $POLY) into a Copy Prediction Contract and select the amount they want to allocate per prediction. This contract will automatically follow the predictions made by an expert trader that the user chooses to follow. The expert is someone who has consistently made accurate predictions and has opted into this feature.
Automated Predictions Once the user’s tokens are deposited, they no longer need to manually follow quests or analyze predictions. The Copy Prediction Contract automates the process, ensuring that users participate in predictions without needing constant involvement. The system monitors and follows the expert's predictions.
Reward Distribution When a copy prediction is successful:
The user's rewards are automatically calculated based on the accuracy of the prediction.
A percentage of the user's reward (e.g., 5%) is transferred to the expert trader as compensation for their insight.
The remaining rewards are deposited back into the user’s wallet.
Fund Management
If the user's deposited funds in the Copy Prediction Contract run low, the contract will attempt to follow the expert's next prediction, but will alert the user to deposit more tokens to secure the position.
If the user does not deposit additional tokens, the position will be canceled, ensuring no liability or unintended trades occur.
Trader Incentive Expert traders are motivated to provide accurate predictions since their performance directly affects their potential earnings and follower base. As more users follow an expert, their overall earnings increase. To register as a trader, an individual must deposit a certain amount of $POLY tokens as a form of collateral. This adds accountability and ensures that only serious, knowledgeable participants can take on the role of a trader. Experts who perform well and attract more followers will be rewarded through increased commission earnings, further incentivizing high-quality predictions.
Smart Contract Logic
User Deposits The user deposits tokens into the Copy Prediction Contract and specifies:
The amount per prediction.
The expert they wish to follow.
Prediction Following
The contract listens for the expert's prediction submission.
Upon receiving the expert’s prediction, the user's funds are allocated automatically in proportion to their specified amount.
Reward Distribution
Once the prediction is resolved, the contract calculates the user’s rewards.
A predetermined percentage of the reward (e.g., 5%) is transferred to the expert trader’s address.
The remaining portion is sent to the user’s wallet.
Fund Management & Notifications
The contract checks the user’s available balance after every prediction.
If the balance is insufficient for future predictions, the contract triggers a notification, prompting the user to top up.
If no deposit is made before the next prediction, the contract cancels the user’s participation until funds are replenished.
Trader Registration Traders must lock a set amount of $POLY tokens into a Trader Registration Contract to be eligible for the Copy Prediction feature. This staking requirement provides an added layer of security, ensuring that traders have a vested interest in maintaining their reputation and providing accurate predictions.
Token Utility
$POLY plays a crucial role in the Copy Prediction system:
Trader Collateral: Traders must deposit a certain amount of $POLY to participate as expert traders. This ensures credibility and accountability in the system.
Reward Mechanism: A percentage of the user’s rewards is transferred to traders in $POLY tokens, incentivizing them to make accurate predictions.
Community Trust: Holding $POLY becomes a symbol of trust and expertise for traders, increasing their credibility among the platform’s users.
By integrating this Copy Prediction Trading feature, Polyquest empowers users to participate in the prediction market with minimal effort while incentivizing expert traders to improve their accuracy, creating a mutually beneficial ecosystem driven by the power of collective intelligence.
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