ErotemeHow Betting Works
Overview of the peer-to-peer prediction betting system.
The betting system allows creators to stake USDC on their predictions, and viewers to bet against them. All bets are at 1:1 odds with a 2% platform fee on winnings.
The Basics
- Creator stakes USDC when making a prediction
- Viewers bet against the creator by staking their own USDC
- Funds are locked in a smart contract on Polygon until the market resolves
- Winners withdraw their winnings after resolution
Even for multi-outcome markets, betting is always binary: the creator bets YES on their chosen outcome, counter-bettors bet NO.
Key Parameters
| Parameter | Value |
|---|---|
| Odds | 1:1 (fixed) |
| Platform fee | 2% on winnings |
| Minimum bet | 1 USDC |
| Token | USDC on Polygon |
| Contract | PredictionBetting.sol |
Gasless Betting
Users with Magic wallets get gasless transactions via Pimlico smart accounts:
- Magic wallet signs the transaction
- Smart account executes on behalf of the user
- Pimlico paymaster sponsors the gas
- User only needs USDC — no POL required
The smart account address is displayed in the UI so users know where to send USDC.
Pool Types
Betting pools can be created from two sources:
| Source | Created When | Closes When |
|---|---|---|
| Prediction | During prediction creation | Market resolves or creator closes |