Augur (REP)

What is Augur (REP)?

Augur is known as a decentralized oracle platform and prediction market (DeFi) built on top of Ethereum in 2014. In other words, Augur is an open source dApp that has both license types. including a public license (GPL) and a license from the Massachusetts Institute of Technology (MIT).

The project is a collection of smart contracts written in solidity that can be executed on the Ethereum blockchain. It can be said that Augur was one of the first dApps on the Ethereum platform at the time.

Augur mechanism of action

As mentioned above, Augur is a method that allows users to create their own prediction market. And to do that, Augur's operation process is encapsulated through the following four stages: Creation, Trading, Reporting and Settlement.

Creation

• To create a prediction market, users need to own at least one ETH and REP token to be able to start building a prediction market for an impending event.
• Next, they must set an end time and choose a reporter to publish the outcome of that event.
  In addition, the creator needs to customize the maker and taker costs so that other users can participate in trading that event.

Trading

• After successfully creating a prediction market, users can proceed to staking on the probability of the event.
• Not only that, users can also trade shares (shares) of that event.

Reporting

• Holders of the REP token can participate in this reporting phase to output the correct report of the event.
• There will be two cases for the reported results. If the result is correct, the reporter will receive a reward and vice versa, if the result is wrong, they will lose the corresponding REP token.

Settlement

• Investors will have two ways to close their position in the prediction market as follows:
• Buy shares at low price and sell at high price.
• Share the reward obtained based on the number of shares held if everyone correctly predicts the outcome of the event that takes place after the market ends.

Roadmap

Updating...

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