Methodology
Understanding the decentralized mechanics behind Hemi Prediction Markets.
System Architecture
How the protocol components interact to ensure trustless execution.
Unlike traditional order-book prediction markets (like Polymarket or Kalshi), this protocol uses an Automated Market Maker (AMM). There is no matching engine; instead, traders buy and sell directly against a smart contract that guarantees liquidity at algorithmically determined prices.
Core Components
- MarketCore: The central registry that holds all collateral (USDC) and manages the lifecycle of every market.
- FpmmAMM: The automated market maker that prices trades using the LMSR math. It mints and burns outcome tokens.
- Outcome Tokens: ERC-1155 tokens representing shares in a specific outcome (e.g., "YES").
BUY: User (USDC) → MarketCore → AMM Mints Tokens → User
SELL: User (Tokens) → AMM Burns Tokens → MarketCore Releases USDC → User
SELL: User (Tokens) → AMM Burns Tokens → MarketCore Releases USDC → User
For more details, view the Source Code on GitHub.