- Steps:
- 1. Install Metamask
- 2. Transfer tokens from Mainnet to xDai Network
- 3. Enable Metamask on the xDai network
- 4. Log onto Omen and view markets
- 5. Trade on an xDai Omen Market
- 6. Create an xDai Omen Market
- Conclusion
- About The Author
Last updated on January 18th, 2023 at 03:59 pm
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Omen is a fully decentralized prediction market platform built on top of the gnosis conditional token framework. Liquidity is enabled through a fixed product market maker which is similar to how Uniswap markets work. This means liquidity will always be available for users to trade as quickly as an ethereum transaction.
Omen is a DXdao-created, DXdao-maintained, and DXdao-governed decentralized maximalist prediction market platform, designed by the DXdao using an open platform for prediction markets developed by Gnosis.
Anyone can launch prediction markets on Omen for any topic they want. You can customize a market’s features, such as
- outcomes and initial probability,
- Markets can be denominated in a variety of assets and stablecoins, including Gnosis’ OWL token, which was created specifically for this use case.
- Date of the resolution;
- Markets can be classified into a variety of categories, including but not limited to technology, cryptocurrencies, and politics.
- Arbitrator: Each market can have its own oracle.
Oracles are specified data sources that are used to transfer real-world data onto the blockchain and verify the conclusion of a prediction market. Unlike other prediction markets, which have a single platform-locked oracle system, Omen is oracle-agnostic, which means you may technically use any bespoke data source as an oracle.
Omen v1 employs the decentralized technology Realit.io as an oracle, with Kleros as the final arbiter; potential Omen oracles in the future might include Chainlink, Aragon Court, and traditional legacy news sites. Omen is designed to be open and modular rather than overly prescriptive, allowing multiple norms and best practices around prediction markets to emerge naturally within the broader ecosystem.
Unlike other blockchain-based prediction markets that use traditional orderbooks to match trades and allow users to easily contribute to Uniswap-like liquidity pools, markets on Omen use an automated market maker to match trades and allow users to easily contribute to Uniswap-like liquidity pools, resulting in high spreads due to insufficient liquidity. Enhanced liquidity means that the pricing of a prediction market can always reflect the most recent expert opinion on the topic.
The conditional token structure is used by a number of platforms, including Omen. The conditional token framework enables the introduction of a new crypto asset class—conditional tokens, as you might have guessed—that allows for higher-resolution information discovery for prediction markets. Outcome tokens issued on Omen will soon be exchanged on external DEXs like Gnosis Protocol, as conditional tokens are ERC-1155 compatible and can be readily wrapped in the Ethereum standard ERC-20. This allows prediction market assets to tap into a global liquidity pool and cross-platform interoperability, even amongst prediction market providers like Omen and Polymarket, which are both based on Gnosis’ conditional token structure.
In addition to increased liquidity and interoperable tokens, Omen’s governance is a crucial component of its innovation. Omen is the main product of DXdao, a sovereign collective with open membership that creates, controls, and grows decentralized finance protocols and businesses. The DXdao, which is made up of self-described decentralised maximalists, requires complete stack decentralization on serverless hosting, application, and governance levels in their apps. Omen maintains its decentralized tenets and combats the “trust problem” of centralized prediction markets with DAO-based governance, while maintaining the freedom to upgrade for platform upgrades over time.
Offering low, stable gas prices, Omen on xDai also fosters an environment of dynamic, composable experimentation beyond the constraints of Mainnet. We hope that, in addition to enUSING OMEN ON xDAI
Designed for fast and inexpensive transactions, xDai significantly reduces gas fees to make Omen even easier to use than its launch in July 2020. Previously, engaging with Omen on Mainnet has been challenging for users who want to explore the possibilities of information discovery and signalling enabled by prediction markets without being hit with onerous fees for every transaction. By allowing users to easily bridge their funds back to Ethereum Mainnet, Omen is able to keep the stakes high but the fees low.
couraging more use throughout the ecosystem for “traditional prediction markets” like Will Joe Biden win the 2020 US Presidential Election?, providing the option to access Omen via xDai will expand possibilities for novel use cases of conditional tokens — an event-based asset class with “if this, then that” logic for tokens.
The xDai release includes a range of new features for Omen:
- Scalar market capability, so that users are no longer restricted to buying discrete prediction market outcomes (for example, “Yes”/ “No”) but can invest within a range (for example, “0–100”).
- Embedded support for the Reality.eth arbitrator, enabling outcome finalization of categorical markets directly within Omen.
- Blockchain native asset support, so that Mainnet ETH, and xDai network xDai tokens, can be used in Omen without needing to wrap them first (they are now wrapped automatically under the hood).
Lets get’s started
There are a few additional steps required to access Omen on the xDai network than on Mainnet.
This guide will outline how to move funds from Mainnet to xDai, then you can trade on and create Omen markets.
Steps:
1. Install Metamask
2. Transfer tokens from Mainnet to xDai Network
3. Enable Metamask on the xDai network
4. Log onto Omen and view markets
5. Trade on an xDai Omen Market
6. Create an xDai Omen Market
1. Install Metamask
The xDai network can be accessed via most wallets based on EOA/private keys, but not wallets like Authereum with underlying contracts on Mainnet. Gnosis Safe, while a contract wallet, is an exception since it is deployed to xDai.
As Metamask is the best option both for connecting to Omen on xDai and wrapping tokens to use on the xDai network, this guide uses Metamask as the connecting wallet.
If you don’t already have Metamask, you can install it at https://metamask.io.
2. Transfer tokens from Mainnet to xDai Network
On xDai, the native token is xDai instead of ETH. xDai is DAI that is “wrapped” to make it technically compatible with the xDai network, while maintaining its ability to be transferred back to Mainnet as DAI. It follows that all tokens must be wrapped accordingly for xDai compatibility while connected to Mainnet via Metamask in order to “bridge” them onto the xDai network. They can be unwrapped later, when you’re ready to return to Mainnet and access the tokens there.
Use these resources to wrap tokens for use on xDai:
• Transfer Mainnet DAI to xDai with the xDai Bridge
• Transfer other ERC-20 tokens via Omnibridge
Let’s start by transferring DAI to xDai:
Log into https://bridge.xdaichain.com, with Metamask on Mainnet and enter the amount of DAI to transfer. This transaction requires a gas fee and will be viewable on Etherscan.
Now that the DAI is transferred to xDai, this transaction and future ones within the network use Blockscout xDai Explorer instead of Etherscan for tracking.
Once you’ve configured your xDai for the xDai network, you’ll be able to see it in Metamask.
3. Enable Metamask on the xDai network
The xDai network, unlike Mainnet and its native testnets, does not appear on Metamask by default. Set up a “custom RPC” (Remote Procedure Call) in Metamask to add it, as detailed here:
(1) Open Metamask and select “Custom RPC” from the network dropdown
(2) Select “Custom RPC settings” and enter the xDai network details below:
- Network Name: xDai
- New RPC URL: https://rpc.xdaichain.com/
- Chain ID: 0x64 (100)
- Symbol: xDai
- Block Explorer URL: https://blockscout.com/poa/xdai
Now you can access xDai via Metamask:
The tokens wrapped in the xDai bridge step should now be visible in Metamask:
4. Log onto Omen and view markets
Finally, we’re connected to the xDai network and have some tokens to utilize. Now comes the exciting part of trading and market-making on Omen: trading and market-making!
Start by going to xdai.omen.eth.link and connecting Metamask:
5. Trade on an xDai Omen Market
We’re connected and have selected a market to trade on: What will the price of Unisocks Edition 0 (“SOCKS”) be at the end of March 2021? [USD], an example of our new Scalar Markets feature. Here, I will buy:
I adjust the slider to go long on Unisocks in the hopes that it would hit my estimated 40,000 USD price. As I move the slider to represent my projection, I’ll see my payoff if the market settles at 40,000 USD, as well as the profit/loss I’ll make.
Now I’m able to purchase the following position:
In two months, I’ll find out if I profited 0.46 xDai, and in the interim, my prediction has altered from 30,000.00 USD to 30,0004.00 USD.
6. Create an xDai Omen Market
Let’s try making our own market now that we’ve learned how to trade on a market.
1. Configure Market
Start by clicking “Create” in the top right corner, which will take you to the following screen:
Make sure to phrase your question so that the arbiter, in this case Kleros, can clearly answer it. For instance, in my market, “Will President Biden lift the current travel restrictions between the EU and the US by June 1, 2021?” asks a question that has a clear yes/no answer and will be confirmed on a specific date. I set the closing date more than a week before the event in question to allow enough time for a clear winner to be determined. This lowers the chances of the market being declared invalid due to an inability to settle it with a clear result.
2. Fund Market
With these parameters set, click “Continue” to Fund Market.
Set the amount of the token with which you would like to fund the market, then click Create Market.
The market is ready for action here: Will President Biden lift the travel restrictions currently in place between the EU and US by June 1, 2021?
Conclusion
Now, I would like to know your thoughts on Omen protocol.
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About The Author
Tony Chimdiuto