ImpactMarkets

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About

The problem it solves # The Problem It Solves The Public Goods Funding Crisis Public goods creators, educators, open-source developers, researchers, face unsustainable funding: Gitcoin Grants run quarterly, Octant donations happen once per epoch, One-time grants provide no recurring income All models rely on pure altruism, which has its drawbacks. Creators are often stuck fundraising instead of building. ## **How ImpactMarkets Solves This** 1. Replaces Donation with Speculation Instead of passive donations, users bet on creator success: Believe Alice will deliver? Buy **YES** tokens Skeptical? Buy **NO** tokens Creators get funded from trading activity regardless of outcome Polymarket has show how well speculation scales, perhaps better than altruism. ## 2. Dual Revenue Streams for Creators Immediate: 60% of all trading fees → creators Recurring: Weekly yield allocation (if market confidence >70%) A creator with $50K monthly volume + 80% confidence earns ~$700/month sustainable income. ## 3. Self-Sustaining Liquidity Traditional prediction markets need constant capital injection. ImpactMarkets is different: Users stake GLM in Octant → Earn ETH yield 50% of yield auto-routes to market liquidity Liquidity grows automatically, no fundraising needed This is the first prediction market with yield-driven liquidity. ## 4. Market-Driven Quality Signals Markets act as credibility filters: High confidence (>70%) = Weekly yield funding Low confidence = Only trading fees, no yield bonus Community belief determines sustainable funding ## Who Benefits **Creators**: Sustainable recurring income, no grant treadmill **Stakers**: Higher engagement + 40% trading fee rebates **Traders**: Profit from correct predictions while funding public goods **Ecosystem**: Scalable, transparent, market-driven funding allocation ## Real Use Cases **Octant Grant Recipients** **Open Source Maintainers** **Educators** **Researchers** # Why This Works Old model: (relies on altruism) ImpactMarkets: "Bet on success" (adds profit motive) When Alice delivers, YES holders profit. When Bob fails, NO holders profit. Either way, creators earn from the activity. Funding becomes engaging, not exhausting. Impact at Scale Built for: Octant creators, public goods builders, Ethereum educators Integrated with: Octant V2 (yield routing) Deployed: Sepolia testnet, fully functional This is prediction markets for good.

How it's made

Challenges we ran into # 1. Yield Routing Complexity **Problem**: Calculating which creators qualify for weekly yield (>70% confidence threshold) while weighing by volume required complex on-chain math with logarithms. **Solution**: Used Solady's FixedPointMathLib for gas-efficient logarithmic calculations. Implemented weighted distribution: (price - 0.7) × ln(volume + 1) to prevent whale manipulation while rewarding high-confidence creators. # 2. Market Resolution State Management **Problem**: After resolving markets on-chain, the frontend wouldn't reflect the resolved state. Trading interface stayed active even after resolution. **Solution**: Added explicit **isResolved** and **yesWon** state reads from contracts. Conditionally rendered UI based on market state - showing redemption interface for resolved markets, trading interface for active ones. # 3. Liquidity Cold Start Problem **Problem**: Yield-based liquidity takes time to accumulate, but markets need immediate liquidity for trading on day one. **Solution**: Hybrid approach - manual seeding via **AddLiquidity.s.sol** for bootstrap, then yield-driven liquidity for sustainability.