Who doesn’t love free crypto?
Over the next three months, Kleros is giving away up to 1 million PNK tokens to incentivize market creation and liquidity providers on the Omen platform. If you’d like to find out how you can get involved and potentially earn yourself some PNK tokens, keep reading.
Good question. Omen is a decentralized prediction market, in which users can place bets on the likelihood of a certain event occurring. It could be a question asking who the next President of the United States is going to be, or asking when it’s next going to rain in the Sahara Desert – the possibilities are endless.
In these prediction markets, Omen users risk their crypto by placing it on a certain outcome. Once the market finishes it is validated by an arbitrator, which is where Kleros comes in. Kleros is the default arbitrator on Omen. Those users that successfully predicted the outcome will take the crypto from the losing side(s), proportional to the amount they put in.
How you can earn PNK
Prediction markets need two core things to function – interesting markets and adequate liquidity. This is why between 29th July and 29th October Kleros is using PNK to incentivize platform activity. The 1 million PNK is being split like so:
- 300,000 PNK will be rewarded each month to market and liquidity contributors over the three month period, totalling 900,000 PNK
- A 100,000 PNK grand prize will be awarded to the most impactful creator. The decision for this prize will be controlled solely by the dxDAO
To become eligible for the market and liquidity rewards users are required to create a market on Omen and add liquidity to the market (we show you a step by step below). Rewards will be calculated and paid based on the proportion of liquidity you provide and how long the liquidity stays in the market. Note that trivial markets such as ‘Is the sky blue’ will be excluded from this promotion, as will duplicate markets.
How to enter
Go to Omen, connect your Web3 wallet and click ‘Create Market’.
This will bring up a page where you must enter all the details of the market you want to create, including the question, potential outcomes and their respective weights, the resolution date and the arbitrator. Make sure you select ‘Kleros’ as arbitrator for the market in order to be eligible for the reward.
Once you’ve filled out the Configure Market section, you can now fund your market by adding liquidity from the token of your choice.
When you’re happy with the settings, click “Create Market”, pay the transaction fees and add your funding. After this, the market will be created.
You can also add liquidity to open questions. Two actions are required to add liquidity to an Omen market. After giving allowance, the user can proceed with defining how much liquidity they want to provide.
You should be aware that providing liquidity means buying all outcome tokens in a proportion based on the likelihood of each outcome, which can be risky as the liquidity provider needs to make sure to remove the liquidity BEFORE the outcome is known. After the outcome is known, all tokens of outcomes other than the winning one would lose their value. You can find more information about adding and removing liquidity here.
As a reward for providing liquidity and taking this risk, liquidity providers are rewarded with a trading fee, which you will earn on top of the PNK bonus you can accrue for your contribution.
What else is going on?
Aside from the 1 million PNK giveaway, Kleros has been busy building their product, growing their community and innovating. Here’s a quick-fire look at what’s been happening:
- Released Curate, a decentralized Token Curated Registry
- Announced Linguo, a decentralized translation service, and launched a test version, with the full release pending
- Achieved record growth numbers, breaking 310 cases on the platform so far
- Arbitrated the infamous case 302, catching lots of industry attention
- Launched the storytelling reward program, where you can submit your stories about Kleros
- Unveiled Kleros Governor, a smart contract automatically enforcing all decisions reached through governance
- Won the Blockchains for Social Good of the Horizon 2020 award by the European Commission, bagging 500,000 Euros
- PNK was listed on new exchanges including Loopring, Balancer, Kyber Network and Hotbit
- Grew the team
- Release financial records (awesome, how many other crypto companies do this?)
…and much more! You can find all the details about what Kleros has been up to in their recent community update.
*This article has been sponsored. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space.