ShitMarket Core Protocol Specification
A Permissionless, Two-Sided CPMM Prediction Protocol & Creator Swap Fee Yield Framework
Executive Summary & Core Thesis
Prediction markets represent one of the most powerful decentralized mechanisms for aggregating information and computing probabilities. By pricing outcomes through financial incentives, they cut through media bias and public noise to surface collective intelligence.
However, first-generation prediction protocols suffer from curation gates, capital extraction, and liquidity bottlenecks. **ShitMarket** is built to decentralize the space entirely. Deployed on high-performance EVM networks (specifically the Avalanche C-Chain), ShitMarket is a chain-agnostic prediction platform built for high-speed speculation on trending meme coins, micro-cap tokens, cultural arguments, and trending internet topics.
At its core, ShitMarket introduces **Permissionless Prediction Sectors** matched with a **Two-Sided Constant Product AMM**. Instead of relying on central gatekeepers to list markets or wait for counterparty order books, any user can deploy a prediction market, seed liquidity, and operate as the primary liquidity provider, capturing trading swap fees in real-time.
The Traditional Bottlenecks
To understand the necessity of ShitMarket, we must evaluate the four structural design failures of traditional, centralized prediction market platforms:
Platforms like Polymarket choose which markets to deploy. Micro-cap coins, trending community debates, local sports, or sudden internet arguments are filtered out, denying users local wagering options.
Influencers, community builders, and content creators do 100% of the promotion to drive users to prediction rooms. Yet, they capture 0% of trading fees, which leak entirely to the protocol operators.
Traditional order-book matching is highly illiquid for niche topics. Spreads are wide, orders remain unmatched, and traders are forced to hold until expiration, rendering early exit hedging impossible.
Settlements are resolved by a single administrative key or private keeper scripts, leading to conflicts of interest, delays, and potential platform exit-rugs of active user stakes.
The ShitMarket Protocol
ShitMarket addresses these problems by combining advanced decentralized wallet onboarding, on-chain automated market makers, and permissionless pool deployment:
100% Permissionless Market Creation
No approval flow, no curation gates. Any user can deploy a prediction pool for any contract address, asset price, or cultural event. Setting up target prices, time-frames, and resolving criteria is done on-chain instantly.
Continuous CPMM AMM Liquidity
Powered by a Constant Product formula, ShitMarket outcome pools provide immediate, continuous liquidity. Traders can enter, exit, or take profits at any time prior to room expiry, without waiting for counterparties.
Gasless, Social-First UX
Onboards Web2 and Web3 users seamlessly via social logins (Google, X, Email) powered by Privy. Relayers sponsor gas fees via Account Abstraction Paymasters, allowing users to sign trades without owning native gas tokens.
Multi-Chain Universal Deposits
Integrated Circle Cross-Chain Transfer Protocol (CCTP) and Relay intents allow players to deposit funds directly from Ethereum, Base, Arbitrum, or Solana, converting automatically into Avalanche Fuji USDC in one click.
Creator Yield & Swap Fees
Traditional prediction markets struggle with the "cold-start" problem—launching a market does not guarantee anyone will trade in it. ShitMarket solves this by aligning community growth with creator incentives. By seeding liquidity, creators receive continuous passive income.
0.10% AMM Swap Fee Structure: Trades incur a 0.10% (10 bps) total fee: **0.07% (70%)** is allocated directly to Liquidity Providers and creators, while **0.03% (30%)** is routed to the platform treasury.
Separate Claimable Rewards: Fees accumulate in USDC via an on-chain accumulator (accFeePerShare). LPs and room creators can harvest their USDC yields anytime without withdrawing their liquidity position.
Zero Cold Start & Low $3 Creation: Deploying prediction rooms costs just **$3 USDC** (anti-spam fee), incentivizing creators to market their rooms across Telegram, Discord, and Twitter to build volume.
Unlike traditional setups where the platform extracts all volume spreads, ShitMarket room creators act as the liquidity providers. You deploy the capital, promote the room, and harvest the yield in real-time. Below is an interactive projection tool to calculate potential creator earnings:
AMM & Settlement Mechanics
The ShitMarket Core protocol manages outcome pool pricing, share backing, and dispute resolutions directly inside decentralized Solidity smart contracts. The mechanical flow is structured as follows:
1:1 Backed ERC-1155 Positions
Wagered collateral is escrowed inside the main core smart contract. When 1 USDC is deposited as liquidity or bet collateral, the contract mints **1 MOON (YES outcome)** share and **1 JEET (NO outcome)** share. Every outstanding share is 100% collateralized, guaranteeing that the vault remains solvent under all market conditions.
Constant Product Outcome Pricing
Traditional order-matching models are replaced by a continuous AMM formula:x * y = kWhere **x** is the reserves of MOON shares, **y** is the reserves of JEET shares, and **k** is the invariant. This model calculates outcome probability prices scaled between **$0.01 and $0.99 USDC** dynamically based on trade volume ratios:P_moon = Reserves_USDC / Reserves_MOONTraders are free to buy or sell shares back to the AMM pool at any point, allowing dynamic exits to secure gains.
Aggregated TWAP Settlement
To eliminate oracle single-point-of-failure risks, the settlement prices are synced via keepers that query and aggregate data across **Pyth Network, Chainlink, DexScreener, and Birdeye**. A 20% outlier protection shield is active, discarding flash loan spikes.
Resolution Challenge Windows & dispute slasher
Once a market resolves, a 30-minute public dispute window opens. Anyone can challenge the keeper's resolution by posting a **Dispute Bond** (in USDC). If the challenge is validated, the original resolving entity's fees are slashed and distributed to the challenger. Disputes are escalated to UMA's decentralized Data Verification Mechanism (DVM) for ultimate vote arbitration, resolving rugs.
Referral Flywheels & Progression
The protocol encodes growth incentives directly on-chain through a permissionless affiliate fee model, creating a viral loop:
Generate your custom referral code and share it with traders. Our smart contracts distribute a percentage of all wagers placed by your referred users directly to your wallet in real-time. No middlemen, no dashboard withdrawals.
Wagers and accurate predictions feed ELO points into your profile. Build accuracy streaks to increase your rank from D-tier to the coveted S-tier to unlock cosmic badges and boosts.
Development Roadmap
The roll-out schedule of ShitMarket is segmented into four sequential phases, ensuring contract audits, liquidity scaling, and cross-chain functionality are complete prior to mainnet launch:
Phase 1: Fuji Testnet Sandbox (Active)
EVM Hardhat compiler testing, indexing keeper synchronization, and Privy smart account Paymaster gas sponsoring loops.
Phase 2: Dispute Escrows & Oracle Slasher
Integration of UMA optimistic oracle contracts on Fuji C-Chain, implementing on-chain dispute bond staking and resolving slasher logic.
Phase 3: Multi-Chain Deposit intents
Circle CCTP bridging contracts and Relay protocol API integration to allow direct Base and Mainnet USDC deposits without leaving the interface.
Phase 4: Mainnet Deployment & TGE
Audits completion by security groups, contract locks setup, deployment of main core controller on Avalanche C-Chain mainnet.
This documentation acts as a live, decentralized specification sheet for ShitMarket Protocol.
© 2026 ShitMarket. Created for degenerate commanders. All rights reserved.