# Prediction Market ## Overview Fyde's prediction markets will enable users to guess which token in the Liquid Vault outperforms. In doing so, users will be able to constantly interact with the gamified Liquid Vault, and obtain a source of revenue in $FYDE for accurate predictions. In order for users to access the prediction markets, users first need to stake $FYDE for veFYDE. This can be done on the Earn tab:
## How to Use Begin by selecting Add Asset in the Asset Gauge Module:
Next, choose the assets you think will outperform.
You can change the voting split by adding more votes to certain tokens. This will impact the payout.
## Prediction Markets Emissions ### Description Fyde will follow a two-stream $FYDE emission process to reward token holders: 1. **Voting-Based Emissions:**\ $FYDE token holders who have locked their tokens (veFYDE holders) can use their voting power to determine which asset depositors should receive emissions. For example, if all veFYDE holders vote for $ETH during an active voting period, all users who have deposited $ETH during that time will receive $FYDE token rewards proportional to their deposit value. 2. **Prediction Market Structure:**\ Users can vote for any asset currently in the vault in a prediction-market style system. Rewards will be allocated to users who vote for tokens that achieve the best price performance over the subsequent voting period. Below is an overview on the emissions process for Fyde's prediction markets. ### Technical Overview Users vote using their **veFYDE balance** on a set of tokens within the vault $$T\_i$$. They participate in a prediction market that rewards them for selecting winning assets. **40% of epoch $FYDE emissions** are allocated to users who voted for assets that outperformed during that epoch. Performance is measured based on the percentage price change of the asset within the epoch: $$ \Delta P\_i = P\_i^n - P\_i^{n-1} $$ The price change of the overall vault is calculated as: $$ \Delta P\_T = P\_T^n - P\_T^{n-1} $$ The share of epoch emissions that each asset is entitled to is determined by: $$ S\_i = \dfrac{\text{max}(\Delta P\_i - \Delta P\_T,0)}{\sum\_i \text{max}(\Delta P\_i - \Delta P\_T,0)} $$ The total $FYDE reward allocated to each asset $$R\_i$$ is then calculated as: $$ R\_i = S\_iR\_T $$ where $$R\_T$$ = total $FYDE reward for the epoch. The asset reward ratio $$S\_i$$ is computed by evaluating the relative price performance of each asset compared to the total vault: $$ S\_i = \dfrac{\text{max}(%\Delta P\_i - %\Delta P\_T,0)V\_i}{\sum\_i \text{max}(%\Delta P\_i - %\Delta P\_T,0)V\_i} $$ Finally, individual user rewards are determined by multiplying the asset reward share by the proportion of the user’s veFYDE balance used to vote on the asset relative to the total veFYDE balance cast for that asset. *** --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.fyde.fi/protocol-overview/prediction-market.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.