How to make money on the decentralized exchange Augur
We have previously considered a platform for betting on the blockchain. At the time of writing that article a decentralized market rates Augur worked only in a test network Rinkeby, but July 9, he went to work in the main Ethereum blockchain. Since the launch of the new address in the smart contract trading volume it has reached 1356 ETH, and the number of active users ? 256. These figures suggest that it’s time to do a full review Augur.
Augur – what is it
The Dapp project is based on the Ethereum blockchain. Users can make predictions on existing events or create their own events, which will be able to supply other users. The most well-known centralized counterpart is the betting exchange Betfair. The main differences Augur from Betfair is the use of cryptocurrencies, the blockchain and smart contracts.
Cryptocurrency Augur (REP)
In the Betfair validation events are managed centrally and possible errors may adversely affect the reputation of the exchange. In Augur checking is a distributed process in which everyone can participate the user possessing the token REP. Such users are called reporters. Reporters do not have to bid, but must serve the network of your checks.
REP is reputation, which is monetized in the cryptocurrency. Guardian REP needs to determine the outcomes of any types of betting. For participation in this work, users are rewarded with REP tokens that can be exchanged on the exchange. If a reporter reported an incorrect result, it gets used and loses some of the tokens from their purse, connected to Core Augur. In addition, abstinence from voting on the outcome of the event is also punishable by a loss of 5% of the currency in the account. Processing REP under the Protocol is not regulated in the Forecast Foundation, but this is for protocols, smart contracts, described in the White Paper Augur.
Without REP you can’t create your event. Create your bet can only be Augur. No other working Dapp does not have such a function now.
How to create a bet Augur
Need to download the official client of Augur and synchronize with the network node. At the time of this writing, sync with bloccano took 3 hours.
Next, you need to open the app and connect it to one of cryptocurrency wallets Metamask, Ledger, best wallet or Edge. To do this, under Account you should choose Metamask => Connect to … Application is a web page that runs in your default browser. It is desirable that this browser was Chrome, Opera or Mozilla Firefox, as they support the most convenient purse for Augur – Metamask.
Next, you need to left click “Create” and the “Market Question” to register the name of the event. This should be done in English, because Augur is an international platform.
For example, you can create such an event: “Will the Real Madrid Super Cup win in 2018?”
Then choose the category of your bets, add tags and move to the next step.
Next, you need to choose the type of bet:
- Yes/No. Corresponds to the “Win” or “win”.
- Multiple Choice. Means more than two types of outcome. For the current events can be a win; win; win on penalties.
- Numerical Range. The outcome is divided by the scale.
The next step is to select the source of correct outcome of an event. You must specify the exact address of the site. For example, the outcome of the match can be checked on the website myscore.com.
You must also determine who will indicate the result: the user creating the event, or someone else. Services other reporters are not required as long as users are bidding on your event, I agree with the outcome. If there are differences, there is a vote of reporters.
At the end of this step, you need to set the exact date and time of end of event.
The next stage in the “Marker creator fee” is selected the size of the fee the Creator of the event. Regardless of the outcome, the Creator will receive a specified percentage of the total fees. This figure can not be more than 50%.
The possible gain is not fixed and is calculated depending on the total volume of bets. The more air loaded on the event, the more money you can win.
We must not forget that Augur is not the bookmaker and the exchange. Hence, bets are made by placing orders for the purchase and sale of the shares. Purchase means that you agree in the author events and supports his choice of acquisition of shares. The sale of shares means that the user believes the opposite.
Then in automatic mode calculates the amount of the fee to pay the miners at ETH, and calculated the amount of REP tokens to pay for the work of reporters.
Since the network must be resistant to spam attacks, has developed the following formula:
(Minimum charge for creating * (Total events 24 hours) / (Total events during the reporting period) / 2
The idea of the formula is that the spam attack will be accompanied by the fee for the creation of events in the reporting period, which will negatively affect the attempts of the attacks.
How to participate in betting Augur from other users
To participate in the betting from other users, you need to go to the “Markets” and select the event of interest. For example, will exceed the price of the Ethereum $500 at the end of 2018?
If the user wants to bet that the rate of ETH will be more than $500, I press Buy and set a limit proposals for the purchase of shares. Similarly, you can make a bet against a, i.e. Sell.
How to become a reporter Augur
To earn the REP tokens, you must first buy them. This can be done using exchanger Shapeshift or cryptocurrency exchanges. It must be remembered that the address of the token REP has changed after the introduction of Augur into the main network.
At the stage of forecasting the reporter is not involved in betting. At the stage of reporting it needs to go to the personal Cabinet in the section Reporting to serve the random events to it. The stage of reporting is 30 days from the date of completion of the event. Reports are downloaded to the network via cryptographic encryption.
Then comes the stage of publishing reports, which lasts for the next 29 days. For this reason, the website still hang bet from the world Cup.
Salary of reporters is 50% of the amount of trading and it is divided among all the “workers” of the division of oracles which indicated the correct outcome. Scheme reportersthe can figuratively be called Augur hashing algorithm PoW, only in this case is actually a real working man, not a mindless brute hashes on the computer.
The main thing that should be noted: – the exchange really works successfully and thoughtfully – year testing was not in vain. Now you can still see the various flaws, but there is no doubt that they will be corrected. Possible problems Augur can be a high fee to the miners or the duration of the treatment outcomes of events. At the moment, competition in the cryptocurrency market forecasting small is a plus for the project. One of the strongest competitors will be Wagerr from Waves, but it’s still not working. Now there are all prerequisites in order to make a long term positive Outlook about the course of bitcoin Augur.