# About ## About Yosoku Yosoku is a decentralized prediction market protocol built on Solana, enabling users to trade on the outcomes of real-world events. The protocol combines high-performance on-chain order matching with cross-chain oracle resolution via LayerZero, providing a trustless and transparent framework for prediction markets. ### How Prediction Markets Work Prediction markets allow participants to trade shares representing the probability of future events. Each market poses a question with a binary outcome, and participants can buy or sell shares reflecting their beliefs about the likelihood of each outcome. #### Share Pricing * **Yes shares** represent belief that the outcome will occur * **No shares** represent belief that the outcome will not occur * Share prices range from **$0.01 to $0.99** * Prices reflect the market's collective probability estimate * At resolution, winning shares pay out **$1.00** per share; losing shares pay **$0.00** #### Example Consider a market asking: *"Will Bitcoin exceed $100,000 by December 31, 2025?"* * If Yes shares trade at $0.65, the market implies a 65% probability of occurrence * A trader who buys 100 Yes shares at $0.65 pays $65 * If Bitcoin does exceed $100,000, the trader receives $100 (profit of $35) * If it does not, the trader receives $0 (loss of $65) ### Market Types Yosoku supports two market structures to accommodate different prediction scenarios. #### Regular Markets Regular markets feature a single binary question with one Yes/No share pair. These are ideal for straightforward predictions with two possible outcomes. **Example:** *"Will the Federal Reserve cut interest rates in Q1 2026?"* #### Multi-Leg Markets Multi-leg markets contain multiple related outcomes under a single market umbrella. Each leg operates as an independent Yes/No pair, allowing traders to speculate on various possibilities within the same event. **Example:** *"Who will win the 2026 World Cup?"* * Leg 1: Brazil * Leg 2: France * Leg 3: Argentina * Leg 4: Germany Each leg has its own order book, enabling independent price discovery for each potential outcome. ### Trading Mechanics Yosoku employs a central limit order book (CLOB) model, providing transparent price discovery and efficient order matching. #### Order Types **Limit Orders** Place an order at a specific price. The order remains in the book until filled or cancelled. **Market Orders** Execute immediately against existing orders in the book at the best available prices. **Covered Bids** Use existing share positions as collateral for new orders. Traders holding Yes shares can use them to back No bids, and vice versa, enabling capital-efficient trading strategies. #### Share Merging Traders holding equal quantities of Yes and No shares for the same market leg can merge them to redeem $1.00 per pair. This mechanism ensures price consistency and provides an arbitrage pathway when Yes + No prices deviate from $1.00. ### Resolution System Yosoku implements two resolution mechanisms to accommodate different trust models and use cases. #### Two-Tier Resolution (UMA Oracle) The primary resolution mechanism leverages the UMA Optimistic Oracle for decentralized dispute resolution. **Tier 1: Proposal** 1. Any participant can propose an outcome by submitting a USDC bond 2. A dispute window opens for other participants to challenge the proposal 3. If no dispute occurs within the window, the proposal is finalized and the proposer's bond is returned **Tier 2: Dispute** 1. A disputer can challenge the proposal by submitting a higher bond 2. The dispute is escalated to the UMA Oracle via LayerZero cross-chain messaging 3. UMA token holders vote on the correct outcome 4. The winning party receives both bonds (minus protocol fees) 5. The market resolves according to the UMA decision #### Wallet Vote Resolution For markets requiring trusted resolution by designated parties, Yosoku supports wallet-based voting. 1. Market creators designate a set of authorized voter wallets 2. Voters cast their resolution votes on-chain 3. Resolution occurs when a majority (>50%) consensus is reached 4. If no majority is reached by the deadline, the market resolves to a 50/50 split, with all shares paying $0.50 ### Cross-Chain Architecture Yosoku's architecture separates trading execution from oracle resolution across chains. #### Solana Layer * Order book management and matching * Position tracking and share accounting * Vault custody of USDC collateral * Real-time trade settlement #### Cross-Chain Messaging (LayerZero) * Secure message passing between Solana and Ethereum * Dispute escalation to UMA Oracle * Resolution receipt and market finalization #### Ethereum Layer (UMA Oracle) * Optimistic oracle for disputed outcomes * Token-weighted voting mechanism * Economic security through bonding requirements This architecture combines Solana's high throughput and low latency for trading with Ethereum's established oracle infrastructure for trustless resolution. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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