Technical Whitepaper

1. Introduction

YoloPredict is a decentralized platform where users compete by predicting cryptocurrency prices. Our platform brings the excitement of price prediction to anyone with a crypto wallet, making financial markets more accessible and engaging.

Using blockchain technology, we've created a transparent system where all predictions, results, and prize distributions are verifiable and tamper-proof.

2. How YoloPredict Works

The core concept is simple: predict the price of a cryptocurrency by a specific deadline, and if your prediction is closest to the actual price, you win from the prize pool.

  • Prediction Markets: Each market has a specific cryptocurrency and end time
  • Entry Fee: Pay a small USDC fee to participate in the prediction
  • Prize Pool: All entry fees form the prize pool (minus a small platform fee)
  • Results: When the deadline passes, the actual price is recorded
  • Winners: Users with the closest predictions win prizes from the pool

3. Technical Architecture

3.1 Smart Contract System

Our platform runs on the Polygon network, chosen for its fast transactions and low fees. The core smart contract handles:

  • Match creation and management
  • Player registration and prediction submission
  • USDC handling for entry fees and prize distribution
  • Result verification via Merkle proofs
  • Prize claiming with cryptographic verification

3.2 Price Oracle System

Accurate price data is essential to our platform's integrity. Here's how we handle it:

  • Price data is sourced directly from Binance API
  • Prices are recorded at the exact match end time
  • Users can verify prices on public Binance charts
  • Only authorized admins can submit price data to the contract
  • All price submissions are permanently recorded on-chain

3.3 Prize Distribution & Verification

We use Merkle trees to efficiently validate prize claims while maintaining security:

  • Off-chain calculation determines rankings and prize amounts
  • Merkle tree created with each player's address, prediction, and prize
  • Only the Merkle root is stored on-chain (gas efficient)
  • Players claim prizes by providing their Merkle proof
  • Smart contract verifies proof against stored root

Our ranking algorithm determines winners based on:

  • Primary factor: Absolute difference from actual price
  • Tiebreaker: Earlier prediction timestamp

Prize tiers typically follow this structure:

  • Top 10% of players receive prizes
  • First place typically receives 40-70% of prize pool
  • Other winners receive smaller amounts based on rank

3.4 IPFS Integration

All match data is stored on IPFS (InterPlanetary File System), a decentralized storage network:

  • Complete match data stored in immutable IPFS records
  • Two IPFS records per match: configuration and results
  • IPFS CIDs (Content IDs) stored on blockchain for reference
  • Full computation and ranking logic visible to all users
  • Merkle proofs for all winners stored for verification

4. User Flow

  1. Browse available prediction markets

    View active markets, entry fees, and prize pools

  2. Connect wallet and pay entry fee

    Use USDC to participate in your chosen market

  3. Submit price prediction

    Enter your predicted price before the deadline

  4. Wait for match to complete

    At deadline, actual price is recorded from Binance

  5. Check rankings

    Review your performance and potential winnings

  6. Claim prizes

    Winners use Merkle proofs to claim USDC prizes

5. Security & Fairness

We've designed YoloPredict with security and fairness as key priorities:

Verifiable Prices

All price data comes directly from Binance and can be independently verified by users using public charts and the exact timestamp recorded on-chain.

Transparent Rankings

Our entire ranking and prize distribution calculation is stored on IPFS, allowing anyone to verify that winners were determined fairly.

Secure Prize Claims

Merkle tree technology ensures only legitimate winners can claim prizes, while maintaining gas efficiency and security.

Smart Contract Security

Our smart contracts follow industry best practices and use established libraries like OpenZeppelin for maximum security.

6. Key Technical Features

On-chain Verification

Critical data stored directly on blockchain for maximum security and transparency.

Off-chain Computation

Complex calculations handled off-chain to minimize gas costs while maintaining verifiability.

Merkle Proofs

Efficient cryptographic verification without storing excessive data on-chain.

IPFS Storage

Permanent, decentralized storage of all match data for complete transparency.

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