👌Problem Statement
Key Challenges
We conducted market research, and it became obvious that Zephyr covers both DPM and crypto exchange fields. The decentralized guess space platform creates an environment where users can fully experience all the benefits of synthetic trading (trading crypto assets without buying them).
That’s why we should shoot a glance at DPM projects’ lowlights and the crypto exchanges as pivotal places for trading. We are not here to tarnish the image of a particular DPM platform or a crypto exchange but to put some pain points on the ground.
Here are the key aspects we should analyze:
1. Predictions Markets:
Binary Predictions Imbalance
Binary platforms have a low-profit ratio in case of a significant liquidity imbalance between the "YES" and "NO." Users have no guaranteed "X gains," while earnings will always be uncertain. If the "YES" forecast polls a large majority compared to a few "NO" bets, then the "NO" cohort will earn next to nothing. What if the price stays flat? Setting the possible results beforehand and emphasizing decentralization principles can’t be matched.
Solved. Zephyr upholds the decentralization principles, including equal treatment of all users. The platform follows the principle that the 60 % of pool forecasters with a result closest to the oracle-proved one will fix profit. The closer a prediction is to the settlement result, the higher the "X gains."
Profit Uncertainty
Some platforms use an unclear multiplier selection system when distributing rewards. If a service uses an algorithm other than the Gaussian distribution, then it can be argued that the system is built on the platform's subjective algorithms.
Solved. Zephyr has a clear and mathematically justified model of rewards distribution.
Outside Influence
Some services determine whether the price of an asset will be higher or lower than the specified values. This is a prominent element of centralized management. Meanwhile, it remains unclear what principle is utilized to determine the price range.
Solved. Zephyr never offers a price or a price range for a crypto asset. It means users should guess the price by themselves.
Entrance Barrier
Far from every crypto owner is an experienced trader and has the fundamental or technical skills required for successful trading. Current prediction services rarely consider that a beginner needs to gradually grow to the minimum level required to trade crypto assets at a profit.
Solved. The platform has simplified trading terminology and offered an intuitive guessing flow. Moreover, Zephyr offers 3 profit-oriented features that every newcomer can't walk past:
- Inclusive market data
- Social trading
- Investing in trading MVPs
Lack of Liquidity
Arguably every DPM platform suffers from a lack of liquidity.
(Our solution - TBD)
2. Centralized Exchanges:
Influence of Whales
Big whales remain an overriding problem for all centralized exchanges. Major players can easily manipulate a coin price as they are well-positioned compared to basic users.
Solved. The platform eliminates the influence of whales as it offers pools with a differentiated betting system. Big players with large bets compete with others of the same deposit level.
Value-Adds of Early Token Owners
Early token owners always get the drop on users who entered a pool at a late stage.
Solved. The Zephyr model of creating forecasts eliminates the influence of early birds and offers equal guessing and rewards distribution conditions for pool participants.
Complex Trading Tools
Early token owners always get the drop on users who entered a pool at a late stage.
Solved. Zephyr offers an intuitive process of making forecasts. Moreover, the platform has other benefits for entry-level users, including market data, investing in MVPs, and AI-powered price analytics.
Centralized Care
By trusting your data and asset access keys to a CEX, you lose control over your funds
Solved. Zephyr is a WEB 3 prediction and trading cyberspace. The platform doesn’t store users’ wallet details, key phrases, or any other sensitive data.
Masters of Information
The opacity of internal Policy, insider information for trading, and the manipulation of stop-loss indicators – are far from all the dirty tricks that crypto exchanges can use at the right moment.
Solved. Zephyr never gets in the middle of the guessing and settlement process or manipulates internal data for its own benefit or the benefit of others. All forecasts and settlement algorithms are held in open source.
KOLs Manipulation
It’s not a rare case key opinion leaders put users on the wrong scent by making highlight declarations on a coin price.
Solved. Zephyr holds arbitrage of KOLs and gathers their forecasts to show whether a so-called expert is worth users’ trust.
3. Decentralized Exchanges
Unusually High Gas Fees
E.g., UniSwap is a top DEX exchange. The platform's standard transaction fee is acceptable (0.3%), but users have to take the shirt off the back to pay gas fees and slippage margins.
Solved. Zephyr platform has the following fees:
- Fees for a single prediction - %
- Guessing with ZEPH token - %
- "Invest in Trading MVPs" fees - %.
No other fees are applicable.
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