Current prediction markets rely on off-chain orderbook mechanisms because they lack efficient on-chain price discovery. This creates several issues:

1. Settlement delays: Traditional prediction markets require waiting for events to resolve before participants can claim winnings
2. Liquidity fragmentation: Off-chain orderbooks separate liquidity from the blockchain's native composability
3. Capital inefficiency: Users must lock capital until event resolution, reducing overall market efficiency
4. Trust assumptions: Off-chain components introduce centralization risks and require users to trust intermediaries The core challenge is that existing on-chain prediction markets haven't leveraged modern DeFi primitives to create truly efficient, instant-settling mechanisms that can operate entirely on-chain.

A fully on-chain prediction market where YES and NO tokens are issued on top of a Dynamic Bonding Curve (DBC), enabling instant settlements without orderbooks. Key mechanism:

• Instead of traditional orderbooks, use a two-sided bonding curve (y = x²) that moves up and down based on YES/NO demand
• Bets are placed by buying into the curve, which automatically adjusts pricing based on market sentiment
• The curve allows liquidity providers to earn yield per trade after results are published
• Tokens are burnt when the event resolves, and USDC is distributed to winners immediately
• No need for gradual selling - instant settlement upon event resolution