Good Morning ☕️

Ever been rugged by Polymarket? Well, it happens, which is why we need to integrate AI to fix the issues that plague vague market resolutions!

Alec James from ORA Protocol and I take a thorough dive in this issue in today’s newsletter…

We are also hoping on Spaces together with Shad from Infinite Games (Bittensor Subnet 6) to discuss this in further depth.

Key Takeaways:

• Prediction markets currently suffer from biased resolution mechanisms, especially in complex cases

• ORA Protocol proposes AI as an objective arbiter for disputed market outcomes

• AI can improve user experience through automated analysis and simplified interfaces

Crypto’s Killer App Needs AI

Prediction markets have undoubtedly been this year’s most successful crypto application, demonstrated by Polymarket’s largest market, the US Election, amassing over $2.3 billion in trading volume.

In fact, Polymarket has been such a popular source for sentiment that aggregating that it was even integrated into the Bloomberg terminal this year…

While capital markets have proven to be a valuable information aggregator and truth seeking mechanism, prediction markets have suffered from frequent allegations of unfairness and manipulation in market resolutions.

There are several factors that influence a market’s resolution, including the specific market’s terms, any nuances, and the mechanism responsible for handling disputes.

In particular, the popular resolution mechanism is vulnerable to subjective, biased, and even inaccurate interpretation, especially when the outcome isn’t binary.

Let’s jump in… ↘️