Augur is an Ethereum-based market for trading the outcome of events in the DeFi space.
Members are able to take part in prediction markets to say what will happen in the future concerning any activity such as elections, exchange averages, games, and exchange averages.
Apart from staking what they have to state what will likely occur, Augur presents data that can be reliable through the contributions of the people that take part in forecasting future events.
Comparison between Augur and centralized prediction markets
Before now, prediction markets were focused on what happens in a particular location so only people who lived in the area were eligible for predicting events around them. As a result, payments for their contributions were made with local currencies.
Unlike decentralized markets, the centralized ones need a third party that participants can depend on to handle the opinion pools as well as dispatch payments.
Augur does not use third parties because there will be none suitable to satisfy the needs of everyone participating from different corners of the world.
Instead of some third parties, Augur makes use of smart contracts to pay members and manage their monies.
Augur v1 introduced an Ethereum-based prediction market to end the practice of using local currencies, which was only favorable to a small group of people.
How to use Augur
The first step is by going to visit here
It is important to own Trezor or some other web 3 wallets because without it, you cannot join the network.
After joining, one can start betting on what will happen in the future.
To bet on any market of your choice, just hit the button that says “trade”. You will see what you are expected to share your opinion on in addition to the odds given to each of them.
At this point, the user can buy as many slots of the prediction as possible depending on how sure he is concerning his/her ideas. This can be compared to a user in the cryptocurrency market buying more than one token at a time.
As an illustration, a user who wants to forecast the winner of the most recent Super Bowl competition will go to the “Trade” button beside it.
When they click, the list of teams left in the competition will show up and from there, the user can bet on the one that will win. This is done with some money called bid amount and a limit order can also be placed. Augur won’t submit your order until you verify that what you entered earlier was not a mistake.
You are expected to know that the size of stakes you have and the money involved will determine the speed of execution. In some cases, they will be done instantaneously while in some others, they will be recorded and executed after some time.
Users can give out their shares to others who believe their decisions were right. This can be done before the final result is revealed.
Once REP holders give their verdict on what shoulso d be held as the truth of each event, users will be either lucky or unlucky. The lucky ones will smile to the bank and they are those that predicted rightly. The other ones that did not make a correct forecast will lose their earnings and probably brace up for another event.
The REP Token
Even though users are expected to bet with Ethereum, it should be known that Augur has a token for itself.
This token, which is known as Augur Reputation (REP) functions as a means of saying the result of the event. Reporters use it to submit a “truth” report.
Where most of the REPs go to in staking is taken to be the winner of the event.
If someone unfortunately stakes his REP for the wrong result, the REP will be shared among those that got it right. In no circumstance will users who predicted correctly be denied their rightful position simply because of what REP holders reported. Users can always contest the decisions they make.
Users with REP can also take part in deciding the truth if they wish to get some part of the platform fees. The share of platform fees gotten is directly proportional to the amount of REP given up for the purpose of reporting.
Augur v1 was used to know if the project was going to be a success. There was no time to give so much attention to reviews from users.
With the success shown by Augur v1, all is now set to make users happier with not just a workable system but one that also values their utmost satisfaction.
Augur v2 promises to be better in terms of:
· User interface that is good both on desktop and mobile devices
· More liquidity from 0x, lower fees, and fast transaction times.
· Additional assets to be used. Now DAI also serves the purpose of ETH.
One of the most important changes that came with Augur v2 is the capacity to declare that a market is not valid. Some issues arose in Augur v1 where certain statements made it difficult to really decide on what the outcome of an event should be. In such cases, the predictions already made should be cancelled.
When a market is found to be invalid, no winners can emerge from it. But those who give out their REPs to report on the outcome will have nothing to lose if no winner should emerge in the end.
Augur v2 is liked by every stakeholder because of these improvements. The new user interface is something to be proud of as a member.
Because Augur 1 left a lot to be desired, Guesser and some other firms decided to partner with Augur and make things better.
People who are already using this decentralized market place can attest to the fact that Guesser has most of the markets there. The good news is that it is even planning to add more in 2021.
Be in touch
Augur sends news to all that subscribe. Getting updates from them regularly is possible if you register on their website.