PancakeSwap Launches AI-Driven Prediction Market on Arbitrum Network
PancakeSwap, a prominent decentralized exchange (DEX), has unveiled a new artificial intelligence (AI)-powered prediction market on the Arbitrum network in collaboration with Allora Network.
This innovative feature will leverage Allora’s advanced machine learning technology to provide price feed data, enhancing users’ ability to forecast Ether (ETH) price movements.
Previously, PancakeSwap’s prediction market allowed users to speculate on whether the price of ETH would increase or decrease within a 20-minute timeframe. With this updated version, users now have the option to align their predictions with or against AI-generated forecasts.
The Allora team highlighted their impressive track record, citing accurate price predictions for over 400 million assets with a confidence level of 95-99% over the past three years.
Chef Gyoza, Product Manager at PancakeSwap, expressed excitement about the partnership, stating, “We’re thrilled to integrate Allora’s AI models into our prediction market. Now our users can challenge their prediction skills against AI, creating an exciting new dimension for our users.”
Allora’s AI models will predict the likelihood of various crypto asset prices rising or falling within the next 20 minutes, allowing users to make predictions in agreement or disagreement with the AI’s forecasts.
The payout structure will adjust based on the AI’s accuracy over time, offering higher rewards for users who predict against the AI during periods of lower accuracy and lower rewards when the AI performs well.
To address concerns about market manipulation, Chef Gyoza assured users that various safeguards are in place, including access to round histories, price feeds, and AI predictions through a dedicated tab on the prediction page. Results will be settled on-chain via the platform’s prediction v2 contract.
Gyoza also discussed the potential impact of the prediction market on liquidity and volatility within PancakeSwap, noting that while the market is still in its early stages, the partnership with Allora opens up opportunities to expand predictions to other markets, both on and off-chain.
This new development promises to bring a fresh, AI-driven perspective to PancakeSwap’s users and showcases the transformative potential of AI in the realm of decentralized finance (DeFi).
In related news, Uniswap, another DEX, has acquired the on-chain game “Crypto: The Game” as it gears up for the launch of its third season.
