Why Darkbet?

Prediction markets work, but they break when they become too visible. Public order books expose intent. Traders start reacting to one another instead of reacting to information. Liquidity follows attention instead of accuracy. What should be a game of knowledge often turns into a game of signalling.

The Core Problem

When every position is public, markets lose balance. A single large bet can shift odds not because of new information, but because everyone sees it and reacts. Frontrunning and manipulation become profitable. On-chain markets face this problem even more directly since every position and transaction is visible in real time and smaller markets take the biggest hit.

The DarkBet Approach

DarkBet is being built to solve this. The protocol introduces Darkpool Markets, where positions and liquidity remain encrypted until resolution. Each market is designed to operate privately through smart contracts that only reveal final results once verified.

The Oracle Layer

We’re designing a Hybrid Oracle Network that combines AI-driven data agents with optimistic and cryptographic validation(inspired from UMA protocol). When sources align, markets can resolve instantly. When they differ, agents evaluate credibility and reach a verifiable outcome. The goal is to create a resolution process that remains fast, decentralized, and free of human bias.

The Privacy Foundation

Our privacy layer is being developed around an Encrypted ERC-20 (eERC20) standard. It uses zk-SNARKs and partially homomorphic encryption to keep balances and trade amounts private while still proving correctness on-chain. All encryption and proof generation will happen locally on the user’s device, ensuring users stay in full control of their keys and data.

What This Enables

Once complete, Darkbet will allow real price discovery without visibility bias. Traders of any size will compete on information, not influence. Markets on governance, elections, or macro events will be able to evolve without crowd distortion.