PancakeSwap, a decentralized exchange, has launched an AI-powered prediction market on the Arbitrum network. 

Leveraging advanced machine learning models from the Allora Network, this new feature aims to enhance user experience and profitability in the ever-competitive world of cryptocurrency trading.

Chef Gyoza from PancakeSwap emphasized the potential of the AI-powered market in an interview with CoinTelegraph: 

"Users will be able to follow or oppose the AI’s prediction. With the AI’s performance and record in our tests achieving close to 65% accuracy, users will have to choose when to oppose the AI, which will naturally have higher odds."

Introducing the AI-Powered Prediction Market

PancakeSwap's new prediction market is driven by Allora’s artificial intelligence (AI) model. This tool provides AI-driven price feed data, enabling users to forecast Ether (ETH) price movements on the Arbitrum network. 

Through this approach, PancakeSwap hopes to offer traders an edge in predicting market trends more accurately.

How It Works

The AI model from Allora predicts the likelihood of price movements for various crypto assets, allowing users to make informed trading decisions. 

Here's a step-by-step guide to using the new prediction market:

• Access the Prediction Market:

  Navigate to PancakeSwap Prediction and select the Arbitrum Chain.

   

• Choose a Prediction Round:

  Select the prediction round you wish to participate in and decide whether to follow the AI's forecast or go against it.

   

• Place Your Bet:

  After selecting "Follow" or "Against," enter the amount you want to predict with (minimum 0.00001 ETH). Confirm and sign the transaction in your wallet.

   

• Wait for the Outcome:

  Each prediction round lasts 10 minutes. Monitor the ETH price movement and see if your prediction is correct.

   

• Collect Winnings:

  If your prediction aligns with the AI and is correct, collect your share of the prize pool once the round ends.

The AI prediction model's performance will influence payout accuracy, adapting over time to improve user experience and fairness.

Benefits and Unique Features

PancakeSwap's prediction market has a blend of AI and user-centric features:

• Daily Rewards and Special Tasks:

  Users are encouraged to participate daily, complete tasks, and engage with the community to earn rewards.

   

• Frequent Giveaways:

  According to Pancakeswap, there will be regular giveaways to keep the excitement alive and incentivize continuous participation.

   

• Social Interaction:

  Players can expand their in-game network, inviting friends and earning additional rewards for each new recruit.

   

• Upgradeable Hamsters:

  Through earned rewards, players can enhance their hamsters' capabilities, increasing their earning potential within the game.

Celebrating the Launch

To celebrate the launch, PancakeSwap is running a 9-week campaign with 60,000 ARB rewards. This initiative is part of PancakeSwap’s effort following a grant of 450,000 ARB from the Arbitrum Long-Term Incentive Pilot Program, with 60,000 ARB allocated specifically for this prediction campaign.

Participants can join the campaign and win from a 60,000 ARB reward pool by making predictions on Arbitrum. Weekly tasks provide opportunities to earn rewards, including loss protection, top prediction bonuses, random draws, and net winning bonuses.

Despite concerns about potential market manipulation, PancakeSwap ensures transparency by allowing users to track round history, price feed history, and AI prediction history on-chain via their prediction v2 contract.