Introduction

Welcome to the fourth episode of SynStation 101, your comprehensive guide to SynStation, the groundbreaking prediction market launching on Soneium. SynStation is revolutionizing the prediction market landscape by addressing key issues found in existing platforms. In this episode, we’ll dive deep into how trading works on SynStation and explore the exciting range of betting topics it offers.

Trading at SynStation

Trading Made Simple

Trading on SynStation is intuitive and straightforward. Your dashboard displays neatly categorized topics, each with its outcomes and odds. Simply choose a topic, place your bet, and you're set!

What sets SynStation apart is its unique Bet & Earn option. Beyond standard betting, you can purchase tokens for your chosen outcome and provide liquidity within a single transaction. While this slightly reduces your potential winnings, you'll earn swap fees and $SYN emissions as compensation.

Liquidity Provision

SynStation empowers liquidity providers (LPs) to engage with markets like professional traders, offering functionality similar to Uniswap V3 and other concentrated liquidity AMMs. LPs can tailor their strategies by setting price ranges and allocating liquidity to specific outcome tokens, earning transaction fees and $SYN emissions as rewards. The best part? You only need to provide liquidity for the outcomes you believe are most likely to occur!

To address the ghost liquidity issue, $SYN rewards for LPs are directly tied to swap fees earned. This incentivizes liquidity provision near the current price, resulting in lower slippage and greater trading capacity for users.

Initial Liquidity Provision

Each new market goes through two key phases: a governance vote and an initial liquidity deposit period. During this period, participants can lock their assets to provide full-range liquidity for all outcomes until the market expires, accepting the inherent risk of potential fund loss. While this approach has limitations—funds are locked and cannot be adjusted until maturity—the rewards are significant. Early liquidity providers earn a substantial share of the total swap fees generated, $SYN emissions, and additional fees from their LP positions, proportional to their deposits. This incentivizes their early support, risk-taking, and vital role in establishing the minimum liquidity required for traders.

Market Deployment Auction

As covered in Episode 1, SynStation empowers the community to create markets. Got an engaging topic idea? Submit a bid! Your bid helps provide initial liquidity while earning you transaction fees and $SYN emissions.

Not enough funds for the minimum bid? No worries! You can deposit into the deployment auction bidding vault and rally community support. Once contributions surpass the minimum bid, your market goes live.

Diverse Market Types

SynStation's prediction markets can operate as derivatives, such as generalized futures, by opening spectral markets. As shown in the attached figure, within a specified range, the value of outcome tokens is linearly correlated with the value or price of the underlying index. These markets allow traders to speculate on various financial assets, including indices, commodities, and even meme coins. This approach appeals to traders seeking lower-risk opportunities (where even incorrect bets may not result in a total loss) and supports more precise predictions on topics such as congressional seat distributions, upcoming inflation rates, and asset price movements—not just binary probabilities.

Potential Market Topics

While the community will ultimately choose markets, the team will curate topics during the initial post-mainnet phase. Here are some inspiring examples:

Entertainment and Pop Culture

Markets can focus on music, movies, and a variety of other content. Predict album sales for popular artists, the outcomes of survival reality shows, or the box office performance of a renowned director’s latest release. With viral trends and global pop culture as inspiration, the possibilities are endless. Upon launch, the following markets will be available:

• Oscars Winners

• Grammy Awards of ROTY/AOTY/SOTY/New Artist of a Year

• Korea Music Awards Winners

• Weekly Neflix #1 English/Non-English Film/Drama

• Weekly Spotify #1 Single/Album

• Weekly Billboard #1 Single/Album

• Similarly, any local music/entertainment chart rankings with enough demand

Sports

Sports offer endless betting possibilities, from single matches to season-long outcomes. SynStation's blockchain-based nature will provide a secure alternative to unregulated betting sites, particularly in regions where betting is not legalized, and potentially attract demand and volume from users of those regions. Note that we don’t need to stick to american leagues only. Any bet on local sports leagues can be held. You can think of markets such as:

• Winners of EPL/La Liga/Bundesliga

• Winners of NBA/NHL/MLB/NFL

• Individual matches like Man City vs. Liverpool

• Will Son Heung-min remain at Tottenham by the end of August 2025?

• Will Mbappe score over 20 goals in the 2024-25 season La Liga?

• Korean and Japanese Women’s Volleyball League winners

• Winner of the next Sumo Tournament.

Politics

Politics and prediction markets are a perfect match. From U.S. presidential races to local elections, markets can explore winner predictions and party approval ratings. Approval rating markets (e.g., 'TRUMP at $0.50, KAMALA at $0.48, OTHERS at $0.02') provide precise, lower-risk alternatives to traditional binary options. Beyond elections, the polarized and entertainment-driven nature of modern politics creates opportunities for unconventional and intriguing topics. Here are a few viable examples:

• Will Trump establish D.O.G.E department within 90 days of inauguration?

• Will Putin leave office by the end of 2025, for any reason?

• Will South Korea’s President Yoon leave office by the end of 2025, for any reason?

• Will Jae Myung Lee lose his right to run for office before the end of 2025?

• German parliamentary seat distribution in the 2025 general election.

Economy, Price Predictions and Derivatives

As mentioned above, thanks to the spectral markets, SynStation can serve traders and speculators who want to bet on various financial assets and events. For instance, our platform uniquely enables short position on meme coins that typically can't be shorted on elsewhere, even with leverages without requiring collaterals! At the launch, SynStation will open (while not be restricted to) following markets:

• Yields on 5/10-year U.S. Treasury notes

• Index (S&P500, NIKKEI, KOSPI200, CSI300) futures

• FX (EUR/USD, USD/JPY, GBP/USD, USD/KRW) futures

• Central bank policy decisions (Fed, BoJ, ECB, etc.)

• YoY inflation rates (U.S., Argentina, etc.)

• Will $PNUT hit a new ATH by the end of 2024?

• Will $BNB flip $SOL?

• Will $ACT flip $GOAT?

And Beyond

As mentioned, the power to create markets lies with the community. Propose any topic that sparks interest, and if the community approves, you’ll earn swap fees and $SYN rewards for your idea. Let your creativity flow—if your idea is engaging enough, it can become a market and reward you in return!

Conclusion

This episode explored SynStation's trading mechanics and the diverse world of potential market topics. For updates and exclusive insights, follow https://twitter.com/synstation and join our staking campaign on Ethereum & Astar at https://staking.synstation.org to start earning points!