Ten years after it started, Ethereum is powering new ideas like DeFi, NFTs, and DAOs—and now it’s changing how prediction markets work. Platforms like Polymarket took in over $1.16 Billion last month. This shows how popular blockchain betting is. New platform wants to increase the efficiency of on-chain betting markets.
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- The popularity of prediction markets is growing, and platforms such as Polymarket have generated billions in trade volume.
- PolyBet was unveiled during ETHGlobal Cannes and aims at streamlining the current system in order to increase efficiency and protect user data.
- These tools have evolved beyond gambling speculation, as evidenced by the growth in prediction platforms.
At the recently concluded ETHGlobal Cannes event, developers unveiled PolyBet, an Al-powered, privacy-enforcing smart router that aggregates prediction markets to unify liquidity, optimize bets, and maximize returns.
The Persuader project descriptionPolyBet is designed to solve the problems of the prediction market, including fragmentation, lack of efficiency, bad execution and privacy concerns. The system also uses Claude AI for rephrasing market titles and descriptions to retool them across a variety of platforms and competitors.
What’s the problem with current prediction markets?
Today’s prediction markets include PolymarketThey operate independently, dividing users, liquidity, prices, etc. across interfaces. The lack of a unified view and a best price forces traders to jump between platforms in order to locate the best prices, resulting in the possibility for arbitrage.
PolyBet is a decentralized betting aggregator that aims to combine multiple betting platforms in a single interface while maintaining privacy. PolyBet doesn’t forward bets to a single destination when users make them. The platform breaks up these bets, determines which execution route is best based on liquidity, price, and impact and then sends it to the destination that will theoretically give the user the highest return.
“What makes PolyBets particularly compelling is its intelligent bet routing system. When a user places a bet, the platform doesn’t simply execute it on a single market. Instead, it employs sophisticated algorithms to calculate the optimal allocation across multiple platforms, potentially splitting a single bet into several smaller ones to maximize returns,” The project description is available.
The process, which is invisible to users, is designed to increase the efficiency of large wagers without increasing costs. This system uses optimization algorithms which take into account execution costs, slippages, and liquidity.
The project also focuses on protecting the identity of users and their activity. PolyBet uses Oasis Sapphire – a privacy enabled EVM chain which encrypts personal data, such as bets, wallet addresses and position. PolyBet does not make all activities public like most dApps.
The SIWE system (Sign In With Ethereum) facilitates authentication, and all bet-related information is protected from deposit until settlement. In prediction markets users can bet on political and financial outcomes that are sensitive.
The blockchain network that powers platforms like Polymarket, PolyBet and Polymarket is visible from a distance. All transactions take place in cryptocurrency, mostly USDC.USDC). Smart contracts allow users to place orders directly through their wallets. There are no intermediaries involved, only direct and transparent settlement.
It remains to be seen if these instruments are merely degenerate betting on political outcomes or if there is something more at stake.
The Block’s predictions market aggregatorIn June 2025 Polymarket’s trading volume reached $1,16 billion, the second highest month in its history. The monthly volume in November 2024 reached its highest point of $2.6 Billion. Polymarket’s total trading volume has now exceeded $4.5 billion. This makes it the largest decentralized predictions platform in the world.
Polymarket has also been backed by industry leaders like Ethereum’s co-founder Vitalik ButerinWho have shared These platforms have the ability to go beyond being mere betting markets to revolutionizing how users access information. Buterin invested in Polymarket back in its Series A, A recent funding round of $200 million has helped the platform to grow.
New markets are also surging. Polymarket launched 7,990 market in June, an increase of 21.4% from May. This spike in activity indicates a growing interest and demand, especially as global events and politics are played out.
Leveraging prediction market arbitrage
PolyBet goes further with its automation. It actively searches for arbitrage by looking at price differences across the integrated prediction markets. Rather than restricting itself to straightforward two-market arbitrage, PolyBet is capable of executing complex, multi-step strategies—such as buying “YES” Sell shares in one platform, but buy them on another “NO” Profitable trades can be made on one platform and then transferred to another. By closing inefficiencies within the markets, these risk-free trades can enhance liquidity on the platform, or even be shared among users. They reinforce PolyBet’s value proposition of being a better aggregator and executer.
PolyBet’s arrival marks more than just another incremental improvement—it’s a leap forward in how prediction markets can operate. PolyBet demonstrates a rare blend of user-centric and technical innovation in this space by automating market discoveries, customizing content to distinct audiences and executing complex arbitrage strategies. A method that unifies fragmented liquidity, improves privacy and enhances overall market efficiency. This makes prediction markets robuster and more accessible to all users.
While influential voices, such as Vitalik Howevern, champion the transformation in these markets and major players like Polymarket attract billions of dollars of activity each year the gambling sector is evolving beyond its stereotypical image of speculative betting. With the intelligence and automation brought by platforms like PolyBet, prediction markets are poised to become powerful tools for aggregating and acting on real-world information—offering both greater utility and a more inclusive experience for everyone interested in the future of decentralized betting.
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Source: crypto.news
