This 6 month old Augur V2 video got me excited. I thought I’d share its value proposition, which I feel is currently being overlooked.If you’ve been in the space for some time, you know what Augur is: a decentralized prediction market and the biggest (in ETH)/earliest ICO on Ethereum. Prediction markets allow for better forecasting by leveraging the power of incentivized wisdom of the crowd. V2 will soon launch with a revamped UI, cheap 0x orders and stablecoin integration. It’s set to become the most accessible, fair and open betting platform out there.What you may not realize is its impact in the Defi space. Each market/prediction/question is represented by a token that can be traded in other Defi apps. This gives it incredible flexibility. Consider these possibilities:DIY Derivative markets - You want to bet on Covid being a threat to the economy. Unfortunately JPOW’s printer is on and it’s pumping the equities markets. Why not create an Augur market that tracks the number of Covid deaths worldwide? What about betting on unemployment rates?Sports betting - Betfair, Draftkings, Bet360? What about Augur, a provably fair betting alternative with unlimited liquidity that can’t prevent you from betting or run off with your money? More from Joey Krug hereAugur as an oracle - Understandably, everyone’s been raging about decentralized oracles lately; they’re how we merge blockchain and the real world. Need an oracle? Design your own with Augur, use it in your Dapp later.Polling and futarchy - Incentivized polling has never been so easy. V2 is positioning itself to become a prime resource for the upcoming US elections this fall. Later versions could even be used to direct policy making by introducing conditional markets. I’ll let 2014 Vitalik explainBug bounties and smartcontract insurance - Easily insure yourself against smartcontract bugs or use your white hacker skills and pay yourself by designing your own bug bounties.This synergetic composability gets incredibly interesting when combined with other Defi legos. How about token sets based on bets between the ratios of active addresses on Ethereum vs Bitcoin? Why not make a Uniswap pair between a Real-T token and a bet against Detroit real-estate to hedge your position and gain transaction fees on the side?TokenomicsWith growing interest over new Defi tokens, REP will no doubt position itself among the top. It’s one of the few that actually benefits from using a blockchain and has a utility that isn’t just governance related. Staked REP consensus is used to validate markets and collect fees in the process.We’ve seen most successful Defi tokens pick up steam, especially in the past month, as mirrored by their sharp price increases: BNT +200%, KNC +90%, LEND + 70%, MKR +60%, LRC +140%. Augur V1 markets aren’t being used right now since the long awaited V2 is just around the corner. The repeated additional delays in V2’s launch date have kept its price comparatively low.With that in mind, if one believes in the team’s ability to deliver and for Defi to continue growing, REP seems to be an extremely strong long term play. Whether you're a token holder or not, you'll likely see its contribution in many spheres of the Defi world. The above examples only scratch the surface of what it enables.Disclaimer - I own some REPFor more info:Augur V2 WhitepaperFinal pre-launch tasksThe Augur Edge by /u/pacific_Oc3an
Submitted June 17, 2020 at 09:41PM
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