EigenBets solves several critical problems in the prediction market space:

Elimination of Human Bias and Manipulation

• Fully automated, AI-driven market resolution removes the potential for human intervention and bias
• Dual AI verification system using different models (Gaia with Llama-3 and Hyperbolic with DeepSeek-V3) ensures consensus and prevents manipulation

Enhanced Transparency and Trust

• All transactions and market resolutions are recorded on public ledgers, allowing for complete verification of outcomes
• Decentralized architecture gives users more control over their funds and eliminates the need for a central authority

Regulatory Compliance and Risk Reduction

• By removing human intervention, EigenBets reduces regulatory risks associated with centralized prediction markets
• Automated systems provide better detection and prevention of market manipulation attempts

Improved Market Efficiency and Accuracy

• AI agents process vast amounts of data in real-time, leading to more accurate predictions and efficient price discovery
• Continuous market presence and automated market-making reduce bid-ask spreads and enhance liquidity

Cost-Effective and Scalable

• Reduced operational costs through automation compared to traditional betting platforms
• Highly scalable infrastructure capable of handling millions of transactions with minimal additional investment

Use Cases and Applications

1. Financial Forecasting: Traders can use EigenBets for more accurate predictions on stock prices, cryptocurrency movements, and economic indicators

2. Political Event Outcomes: Users can bet on election results, policy decisions, and geopolitical developments with reduced risk of manipulation

3. Sports Betting: EigenBets can offer a more transparent and efficient platform for wagering on sports outcomes

4. Corporate Decision Making: Companies can leverage EigenBets for internal predictions

1. Account Creation and Wallet Connection

• Users download the EigenBets mobile app or visit the web platform
• They create an account or log in using existing Web3 credentials
• Connect their preferred wallet (MetaMask, WalletConnect, or Coinbase Wallet)

2. Browsing Markets

• Users are presented with a dashboard of active prediction markets
• Markets can be filtered by category, popularity, or closing time
• Each market displays current odds, total liquidity, and time remaining

3. Placing Bets

1. User selects a market of interest
2. Chooses YES or NO position
3. Enters the amount of USDC to bet
4. Confirms transaction in their connected wallet
5. Smart contract executes the swap, minting YES/NO tokens

4. Managing Positions

• Users can view their active bets in their portfolio
• Option to increase position or sell tokens back to the market
• Real-time updates on current odds and potential winnings

5. Market Resolution

1. When the market closes, the AVS initiates the verification process
2. Dual AI agents analyze data sources (e.g., Twitter sentiment)
3. Consensus is reached and recorded on IPFS
4. Smart contract receives the verified outcome

6. Claiming Winnings

• Users holding winning tokens are notified
• They can claim their winnings directly through the app
• Smart contract distributes USDC proportionally to winners

Data Flow

graph TD
    A[User] -->|Connects Wallet| B[EigenBets Frontend]
    B -->|Fetches Markets| C[Smart Contracts]
    A -->|Places Bet| B
    B -->|Executes Swap| C
    C -->|Mints Tokens| B
    D[AVS - AI Agents] -->|Analyze Data| E[IPFS]
    E -->|Verified Outcome| C
    C -->|Resolves Market| B
    A -->|Claims Winnings| B
    B -->|Distributes USDC| C

EigenBets is built on three core components:

1. Smart Contracts (Uniswap v4 Hooks)
2. Automated Verification System (AVS)
3. Cross-Platform Frontend

Core Functionality

Smart Contracts

• Implement prediction markets for binary outcomes (YES/NO)
• Utilize USDC as the base currency
• Leverage Uniswap v4 Hooks for custom AMM logic
• Enable users to bet, add/remove liquidity, and claim winnings

Automated Verification System (AVS)

• Dual AI agents (Gaia with Llama-3 and Hyperbolic with DeepSeek-V3)
• Analyze cryptocurrency price data and social media sentiment
• Provide tamper-resistant, verifiable market resolution
• Store validation data on IPFS for transparency

Cross-Platform Frontend

• Built with Flutter for iOS, Android, and Web compatibility
• Intuitive interface for market browsing, betting, and portfolio management
• Seamless wallet integration (MetaMask, WalletConnect, Coinbase Wallet)

Key Implementation Details

1. Smart Contract Logic

   • Custom swap() function for direct and two-step token exchanges
   • Liquidity tracking and management within hooks
   • Automated market resolution and winnings distribution

2. AVS Integration

   • RESTful API for market creation and verification requests
   • Docker containerization for consistent deployment
   • Prometheus and Grafana monitoring for system health

3. Frontend Development

   • Responsive design with adaptive layouts
   • Web3 connectivity via JavaScript bridge and native SDKs
   • State management using Provider pattern for reactive UI updates

4. Security Measures

   • Dual AI validation to prevent manipulation
   • IPFS storage for immutable record-keeping
   • Input validation to guard against injection attacks

By leveraging EigenLayer's infrastructure, EigenBets aims to provide a trustless, transparent, and efficient prediction market platform that eliminates human intervention

EigenBets integrates several key APIs and services to enhance its functionality:

Chainlink Oracle Network

• Provides real-time cryptocurrency price data for market resolution
• Enables access to external APIs for additional data sources

Automated Verification System (AVS)

• Custom-built oracle service for social media sentiment analysis
• Dual AI agents process and verify market outcomes

Smart Contract Interactions

• Uniswap v4 Hooks for custom AMM logic
• EigenLayer integration for AVS registration and verification

Key Differentiators

1. Fully Automated Resolution

• EigenBets: Dual AI agents analyze data and resolve markets without human intervention
• Polymarket: Relies on human arbiters, introducing potential bias and manipulation

2. Transparent Verification System

• EigenBets: Automated Verification System (AVS) with all data stored on IPFS
• Polymarket: Centralized verification process, lacking full transparency

3. Regulatory Compliance

• EigenBets: Reduced regulatory risk due to elimination of human intervention
• Polymarket: Faced $1.4 million CFTC fine and US customer prohibition

4. Custom AMM Integration

• EigenBets: Uniswap v4 Hooks for superior liquidity and price discovery
• Polymarket: Traditional market-making mechanisms

5. Decentralization

• EigenBets: Truly decentralized with no central authority or identifiable leadership
• Polymarket: Operates with a central headquarters and CEO

Unique Aspects

1. Dual AI Consensus: Utilizes two different AI models (Gaia/Llama-3 and Hyperbolic/DeepSeek-V3) for outcome verification
2. EigenLayer Integration: Leverages EigenLayer for enhanced security and scalability
3. Cross-Platform Flutter Frontend: Seamless experience across web and mobile devices
4. Multi-Asset Support: Accepts over 30 cryptocurrencies as collateral

By addressing Polymarket's key weaknesses - human intervention, regulatory issues, and centralization - EigenBets offers a more trustless, efficient, and scalable prediction market platform.