Decentralized prediction market platform Omen, developed and maintained by the DXdao, and powered by the Gnosis conditional tokens framework, has now launched on the Ethereum sidechain xDai, to enable faster transactions with significantly lower gas fees.
“With the deployment of Omen on xDai we increase its usability. On Ethereum mainnet, only markets with +$100k in funding are currently viable now. On xDai this can be reduced between $100 to $1000 due to extremely low transaction costs, which will hopefully open up new use cases for prediction markets on Omen,” said Stefan George, CTO of Gnosis.
Most recently, crypto prediction markets were deemed ‘unready’ for the opportunity presented by the US election, with high gas fees cited as a stumbling block for those based on Ethereum – the move to xDai solves that issue and paves the way for more successful adoption of decentralized prediction markets.
Market creation, trading, and liquidity provision on Omen all stand to benefit from its deployment on xDai, which specializes in fast, inexpensive transactions that avoid the need for hefty Ethereum gas fees.
“DXdao is proud to launch Omen on the xDai network. With drastically reduced transaction fees, Omen users can now enjoy near-instant transactions. It is exciting for Omen to expand to multiple networks, illustrating DXdao’s commitment and leadership in scaling decentralized applications, “said a spokesperson from the Omen Guild, a collective within DXdao.
Omen was launched by the DXdao in July 2020, to enable anyone to create a prediction market and trade on outcomes using an automated market maker, contributing to Uniswap-like liquidity pools.
Omen’s features are powered by the open source conditional tokens framework, which was developed by Gnosis and enables minting of conditional tokens, an event-based asset class with an ‘if this, then that’ logic for tokens – this framework provides the building blocks for liquid prediction markets for information discovery and forecasting.
Omen’s reach and potential through its availability on xDai have already opened new opportunities such as oracle integration with API3 data feeds that allow users to create prediction markets for prices of the most traded cryptocurrencies and settle them with a single API call.