What is NYBU
Nybu is a decentralized prediction market that makes it easy and simple to capitalize on asset price movements.
What is a prediction market
A prediction market is a market where individuals can trade contracts that pay based on the outcomes of unknown future events.
Here is a simple example to make it clearer :
John believes that the price of oil will increase over the next 3 months so he opens a $100 position with a 3 months expiration. Ann thinks the opposite, and that the price of oil will decrease, so she takes the opposite position of the trade with the same amount, $100. When 3 months have passed, the payout is determined by the price of oil. If it has increased, then John takes home the whole $200. If it has decreased, then Ann takes the $200 instead.
NYBU's prediction market
NYBU extends the notion of a prediction market with some additional rules to simplify its operation:
- Contract intervals are pre-defined (1 minute, 5 minutes, etc). Custom intervals are not supported at this time.
- One contract is linked to one asset price.
- There is no dependancy between different contracts.
- While in alpha, NYBU will focus on offering contracts linked to crypto assets (BTC, ETH, BNB, etc). Other asset classes such as stocks or currency pairs are currently being developed and should be available in beta or pre-release stage soon.
NYBU contract example
Building on the example we gave previously, let's see an example of NYBU's prediction market:
John and Ann are interested in the (BTC/5min) chart, but they have contradictory viewpoints. John thinks BTC's next candle will end up bullish, so he initiates a bull transaction with 1 BNB on the (BTC/5min) contract, locking his position with the bulls. Ann has an opposite read on the market, so she initiates a bear transaction also with 1 BNB on the (BTC/5min) contract, also locking her position with the bears. The round is settled when the next candle closes. If it closes bullish, then John wins and is awarded 2 BNB, on the other hand, if it closes bearish, then Ann wins and takes home the 2 BNB.
Why NYBU ?
In essence, NYBU's main offering is a more streamlined trading experience where much of the complicated jargon associated with trading (slippage, order fill, loss/profit targets, etc.) is removed and you are left with a simple question - and most probably the first question you ask yourself - which is: Whether the price of a certain asset will go up or down?
Answering that question correctly is the only thing you need to do to be successful in our prediction market.