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PancakeSwap joins forces with Allora to launch AI powered Prediction Market on Arbitrum
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PancakeSwap joins forces with Allora to launch AI powered Prediction Market on Arbitrum

2024-06-26 by Ndaman Olayinka 6 minutes read
PancakeSwap joins forces with Allora to launch AI powered Prediction Market on Arbitrum

PancakeSwap has joined forces with Allora Network to launch an artificial intelligence (AI)-powered prediction market on Arbitrum.

PancakeSwap's Prediction Market was launched to allow Arbitrum users to predict changes in Ether prices using data provided by Allora Network's machine learning capabilities, according to a press release statement. 

We are thrilled to introduce PancakeSwap's Arbitrum prediction market, which includes an Allora-powered AI-driven price feed! This expansion shows our dedication to providing a broad range of functionalities to our diverse user base on Arbitrum, building on the success of our Swap, Yield Farming, Syrup Pools, Perpetuals, and Options Trading features. We are kicking off a nine-week campaign with a total reward pool of 60,000 ARB to commemorate this milestone.

In an interview with Cointelegraph, PancakeSwap's Product Manager, Chef Gyoza, gave the following explanation of the company's decision to work with Allora: "With a 95–99% confidence level for the most accurate predictions, models developed by the Allora Labs team (previously known as Upshot) have produced price predictions for over 400 million assets over the last three years." 

Nick Emmons, co-founder and CEO of Allora Labs, expressed his excitement about the launch in a social media post on X, saying that the Allora Network predictions are off to a good start in the new AI-powered prediction market on PancakeSwap. 

How does PancakeSwap Prediction work?

Users can predict the price movements of tokens like ETH every ten minutes on PancakeSwap's Prediction Market, with the chance to earn a portion of the round's prize pool. 

The Arbitrum Chain must be chosen by users after they visit PancakeSwap Prediction. When it comes time to make a prediction, they decide which prediction round to join and base it either on the AI's prediction or on something else. Using the "Follow" or "Go Against" options on the interface, users can choose to follow the AI's forecast or not.

Note that you won't be able to see if the AI thinks the price will rise or fall until after you've placed your bet. The AI will not make any predictions against any user because users will place both "Follow" and "Against" bets. On the basis of their judgment, users instead decide whether to trust the AI or not. 

In her summary of the new prediction market, Gyoza said: PancakeSwap users will have the option to accept or reject the AI's forecast. Users will have to decide when to oppose the AI, which will naturally have higher odds, given its performance and track record in our tests, which have shown it to be nearly 65% accurate.

Since it's still a new product, we don't currently believe it'll influence the market to a large extent. However, we think that by partnering with Allora, we can broaden the predictions to many other markets, both off-chain and on-chain. Gyoza added. 

PancakeSwap, in a statement, said it has set aside 60,000 ARB in rewards for its nine-week prediction campaign to commemorate the launch. This is made possible by a grant of 450,000 ARB from the Arbitrum Long-Term Incentive Pilot Program. 

An AI-powered portfolio management tool called CupcakeHop, created by Bril Finance, is about to be launched, as PancakeSwap recently revealed. A wider audience will be able to access customized investment strategies and real-time risk management with the launch of this new tool in August. 

Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.