Background

Decentralized finance (DeFi) has experienced remarkable growth since 2020, reshaping the financial landscape by enabling more inclusive, transparent, and efficient financial interactions. As this sector continues to evolve, various components of DeFi are poised for significant expansion. Among these, prediction markets stand out as especially promising, positioned on the cusp of exponential growth. These markets can leverage the transparent, trust-less nature of blockchain technology to facilitate trades on a wide array of future events, from election outcomes to sports.

Despite the promising outlook, the widespread adoption of prediction markets faces considerable obstacles due to inherent challenges in their current operational models. Traditional AMM-based models are prone to impermanent losses, deterring liquidity providers due to potential financial risks that can outweigh the rewards. Markets that utilize open order books face significant hurdles in the early stages, primarily due to low order matching rates. Without sufficient participants and a high volume of orders, these markets cannot achieve the necessary liquidity to operate efficiently, resulting in slow market growth and reduced user engagement.

To address liquidity issues and low order match rates in prediction markets, Tanθ was born. Its on-chain order book serves as a global liquidity source, ensuring high order match rates for all prediction markets built on top. Tanθ not only resolves these challenges but also positions itself as a one-stop solution, offering pre-curated events, reliable sources of truth via oracles, comprehensive dispute resolution mechanisms, and a customizable, white-labeled frontend. This complete package empowers anyone to create a prediction market in minutes.