DeFi came into the limelight in the blockchain industry not too long ago and seems to be crowded already. Can you still make money in this relatively young industry? Yee. Will it be easy? I cannot guarantee. But then, you sure can do with as much knowledge as possible. Talking about knowledge, we stumbled upon Wolfystreetbets (often called Wolfy for short) a while ago and think their model is worth studying for anyone seeking to learn a thing or two in this industry.
Wolfystreetbets is a blockchain prediction platform that allows the incorporation of different chains. From what's available online, it is their mission to make the gap between centralized and decentralized finance (Defi) less distinct. This means that users of the platform can place a bet (or stake) on any form of money, fiat or cryptocurrency, and reap their rewards if they predict correctly.
Until now, there have always been platforms that cater to the need to either centralized or decentralized asset predictors, but never both. And here is Wolfystreetbets obviously trying to lead the innovation race by providing a platform that caters to both classes of punters.
While the world of decentralized stock and asset prediction is not new to many, it is entirely different experience for many others. What is the implication of Wolfystreetbets' entrance into the asset prediction scene? Before we proceed, let's understand a few relevant concepts.
A Summary of Decentralized Finance (Defi)
Understanding the Defi space is the necessary first step before one can comprehend the effect of Wolfy's presence in the decentralized asset prediction. Take, for instance, your traditional finance system, where intermediaries like brokerage and banks play a pivotal role. To account for the large number of transactions happening every second, physical and online ledgers document very cash movement.
The downside to the traditional way of doing things is that the intermediaries hold more power than the owner of the monies. Defi is a much-sophisticated approach to the documentation of financial transactions and their various instrumentations. Instead of having intermediaries run the show, smart contracts make it easier and cheaper to make borderless transactions.
Decentralized Stock and Asset Prediction
Every innovation is sure to reach a point where evolving would be inevitable. As a result, the stock and asset prediction growing within the Defi ecosystem was no surprise. This evolution made it possible for adopters of decentralized finance to bet on a future occurrence and earn if it happens as stipulated. It is much of a big deal because any central body can not influence it. As a result, it is free of corruption.
That said, a problem with the Defi prediction marketplace is the legislation of countries that promulgate laws to stifle their growth. Overall, it truly is borderless with little to no influence from outside.
The Need for a Hybrid Stock and Asset Prediction Market
Comparing both forms of prediction market would be like comparing an infant to a patriarch. According to Coingecko, the decentralized prediction market is worth just over half a billion dollars, which is considered a fraction of the amount attracted in the just-concluded US presidential elections. Despite the unfairness in comparison, the decentralized prediction market has grown exponentially from what it originally was.
As it is with every business, one of the metrics for testing growth is the number of adopters. Considering how skeptical the general public can be towards the decentralized financial system, one of the ways to grow the number of adopters is to come up with a solution that includes both the centralized and decentralized systems. This is why we mentioned wolfystreetbets in the first place.
Bridging the Gap between Decentralized and Centralized Prediction Market
Wolfy combines true decentralization (i.e., the absence of treasury, marketing funds, and team) and transparency through its community ownership and governance to earn the trust of adopters. As expected, this gives credence to their mission of creating a platform that is free of influence from a central body. Wolfy also intends to evolve into a Decentralized Autonomous Organization (DAO) through addition to the already rich ecosystem.
Aside from what Wolfy stands for and what it aims to achieve, another block they are setting in place to increase the chances of non-adopters looking their way is the reward system. Users are rewarded for simply having the Wolfy token or for correctly predicting an outcome. With Wolfy as an ERC-20 token, rest assured that you're dealing with the industry standard.
While it is still only on the ethereum mainnet, plans are in motion to make it a multi-chain network, with its first port of call being Polkadot. This shift will further decrease the barrier to participation and increase the number of new users.
Making Money on the Wolfy Platform
Wolfystreetbets allows you the freedom to stake popular crypto assets against stocks. Information available on their website suggests there are a variety of ways you can bet on Wolfystreetbets. You can either predict an outcome, protect your investment against loss by hedging, or fund the liquidity pool with crypto assets for decent yearly returns. And there are no restrictions to the assets permitted on the platform as you can stake via the Binance Smart Chain or Polygon.
Defi may have arrived centuries late, but the exponential growth it has enjoyed since the advent of blockchain technology goes to show that it's the next big thing. Pretty soon, the primary source of passive income in the crypto world may be all about generating interests from owned assets. It goes without saying that right now may be the time to act, or you could rue the missed opportunity.