Dynamic Market Pricing (AMM)

Understanding how pricing works in DarkBet’s prediction markets.

Overview

DarkBet uses a Fixed Product Market Maker (FPMM) model to ensure fair and dynamic pricing for every market. This mechanism continuously adjusts prices based on the ratio of liquidity between YES and NO outcomes, creating a self-balancing system that reflects real market sentiment.

How Prices Work

• Prices are determined by the pool balance ratios of YES and NO shares.

• The combined price of both outcomes remains constant: YES price + NO price = 0.01 BNB (fixed total market price).

• When more users bet on one side, the price of that outcome increases while the opposite side decreases.

• Every trade slightly shifts the market, ensuring real-time price discovery.

Betting Options

1. Market Price (Default) Buy shares instantly at the current market rate. This is the fastest and simplest way to participate in a prediction.

2. Custom Amount Enter any BNB amount to receive shares based on the current market price. Real-time quotes are displayed and remain valid for 30 seconds before refreshing. The formula used is: Shares = Amount Paid ÷ Current Price

Example If YES is trading at 0.006 BNB and you bet 0.01 BNB:

• YES Price: 0.006 BNB

• Your Bet: 0.01 BNB

• Shares Received: 0.01 ÷ 0.006 = ~1.67 shares If the YES outcome wins, your payout will be 1.67 × 0.01 = 0.0167 BNB.

Market Dynamics

• Bullish Market (More YES Bets) More liquidity flows into YES, increasing its price and lowering NO — signaling positive sentiment.

• Bearish Market (More NO Bets) More liquidity flows into NO, increasing its price and lowering YES — reflecting negative sentiment.

• Balanced Market Equal liquidity on both sides stabilizes prices around 0.005 BNB each.

Advantages of AMM Pricing

• Fair and Algorithmic — Prices are set purely by supply and demand.

• Continuous Liquidity — Every participant contributes to market depth.

• Resistant to Manipulation — Algorithmic balancing prevents manual price distortion.

• Transparent and Predictable — All calculations are verifiable on-chain.

• Efficient Price Discovery — Market sentiment adjusts dynamically with each trade.