Drift’s BET platform brings prediction markets to Solana blockchain News ▸ Solana ▸ Technology
Drift’s BET platform brings prediction markets to Solana blockchain
The Solana-based platform introduces novel features that distinguishes it from rivals in the market.
2 min read
Updated: Aug. 19, 2024 at 8:15 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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 BET’s 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 event’s 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 Polymarket’s 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 market’s 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.
Mentioned in this article
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
USD Coin
$1.00011
USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
Bitcoin
$97,539.65
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,346.26
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Polymarket
Polymarket is a decentralized prediction market platform that enables users to bet on world events using cryptocurrency.
Gemini
Gemini is a regulated digital asset exchange and custodian that allows customers to buy, sell, store, and stake digital assets in a regulated, secure, and compliant manner.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Elizabeth Warren is an American politician and former academic known for being fiercely anti-Bitcoin and anti-crypto.
Vitalik Buterin stands as the pioneering force behind Ethereum, a transformative community-driven platform that fuels the cryptocurrency ether (ETH) and underpins a myriad of decentralized applications.
