[Discussion] Allow user-created markets on Polygon

Augur Turbo offers near-zero trading fees but it restricts market creation to contract-created markets. Users cannot create markets. While users may create markets on Augur v2, they have to be willing to pay high gas fees. The advantage of this restriction is that markets are created regularly without human intervention and that market phrasing is always correct thus reducing trolls and scams. However, it restricts Augur’s offering and does not allow for P2P and esoteric markets; it limits the markets to subjects that are already available via a data feed. Setting up a new type of market can take up a month or more in partnerships and dev work.

This proposal is to let users create markets on Augur Turbo on Polygon to leverage low gas. It is important to ensure that the markets are not troll-able and scam-able. Thus two options present themselves:

Option A
Let user pick and choose from a list of markets.

Since data feeds are already available, an option is to show all potential markets based on that data and allow the user to pick and choose which markets should be created. User should not be asked to phrase the market, they should only fill in the blanks on a market template and press a button to create the market.

For example, an NFL data feed has data for games (Buccaneers vs. Patriots). The types of markets for games are over/under, totals, futures, prop bets, and parlays (non-exhaustive list); and all of these can be created from the same data. Thus, the UI can show the user a list of potential markets and let them select which ones should be created.

Option B
Allow users to create markets free-form.

This option suggests a market creation strategy similar to Augur v1 and v2. Users are allowed to create markets as they wish. The downside of this option is that scammers are able to phrase markets such that seem correct but resolve to invalid. Some ways to combat scam markets are:

  • have the DAO or a subset of appointed members curate the markets for phrasing.
  • the market creator needs to stake a significant amount that they lose if markets is deemed scam by the community. The market should be frozen to disallow trading.

Option A. Users can’t be trusted to make sensible markets without some sort of guide lines

Why does it need to be one or the other?

In my mind it would seem prudent to start with option A, a template-style market creation mechanism seems like a great idea to deploy either way. There could potentially be some sort of indication that a given market is based on a template like that. Then more risk averse/novice users would have an extra level of confidence in those markets. As long as there’s clear differentiation between these types of markets I think these options need not be mutually exclusive.

I think we need user created markets and we need a way of validating them. And there are people who like creating markets who are trustworthy. It should be possible to identify a group of these people and have them validate markets. For instance, they could have a 24 hour period where a new market is proposed and then people could challenge it as invalid (and this could use the augur dispute mechanism).

No one can be trusted.