Drifts BET platform brings prediction markets to Solana blockchain
DeFi protocol Drift has launched a prediction market called BET on the Solana blockchain, according to an Aug. 19 statement.
Drift Protocol co-founder Cindy Leow likened BETs prediction market to perpetual trading. She explained that, just as perpetual traders bet on potential price changes in crypto, prediction markets allow for financial stakes in the outcomes of real-world events.
She stated:
Taking real events into permissionless financialization opens up the door to bet on everything from making a hyperlocalized bet with a few friends to trying to predict the outcome of a US presidential election.
BET features
BET operates similarly to Polymarket, allowing users to purchase YES or NO shares on an event like the upcoming US presidential election.
However, the Solana-based platform stands out by allowing users to use over 30 cryptos including USDC and SOL, among others as collateral. Users also earn a yield on their assets before the events outcome is determined.
Additionally, BET gives users the ability to hedge their predictions with structured bets. This feature allows them to take a long position in the prediction market while shorting Bitcoin. The platform also features a rewards system called FUEL, which is designed to boost trading activity and incentivize user engagement.
While BET is initially focused on the US elections, plans are underway to expand into other areas, such as Formula 1 and other crypto and cultural events.
Prediction markets popularity
Decentralized prediction markets have surged in popularity this year thanks to Polymarkets success. These platforms allow users to bet on events, ranging from sports outcomes to geopolitical incidents.
Ethereum co-founder Vitalik Buterin has notably praised prediction markets as one of the leading social epistemic technologies of the 2020s. He said:
[These markets are] truth-seeking and democratic, built around open public participation rather than pre-selected elites.
However, the markets growing popularity has drawn regulatory scrutiny. The US Commodities Futures Trading Commission (CFTC) and lawmakers like Senator Elizabeth Warren have expressed concerns about the impact of these bets on public interest and called for their restrictions.
Conversely, critical players in the crypto industry, such as Coinbase and Gemini, oppose these regulatory moves, arguing that they are economically flawed.
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