- D8X has rolled out leverage for Polymarket bettors.
- The rollout comes despite risk management concerns.
- D8X claims to sidestep risks with a unique model.
From endless praise from Ethereum co-founder Vitalik Buterin to mentions by mainstream media, 2024 has been the breakout year for Polygon-based prediction market, Polymarket. Speculation around the U.S. November 2024 Presidential elections has also contributed to putting the platform in the limelight.
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Amid Polymarket’s success, in July 2024, D8X, a decentralized exchange on Polygon zkEVM, OKX’s X Layer, and Arbitrum, unveiled plans to make the platform potentially more exciting for degens with leverage. Despite questions about the practicality of such a feature from a risk management perspective, D8X has launched the product.
D8X Rolls Out Polymarket-Based Leveraged Prediction Markets
D8X has rolled out leverage for Polymarket bettors. On Tuesday, September 24, D8X announced that its leveraged prediction markets built on Polymarket were now live, allowing users to bet on anything including politics, sports, and entertainment with leverage, using any of D8X’s supported front-ends.
The launch comes despite worries about how traders would be able to manage their risk due to the unique nature of prediction markets that could see a user’s position immediately plummet to zero in case of a news event.
To address these concerns, D8X asserts that it uses “dynamic leverage, dynamic fees, and slippage” without going into details about what this would mean in practice for users.
DailyCoin could not reach D8X for comments at the time of writing.
Ideally, the perpetual futures contracts would allow Polymarket bettors to double down on their convictions or hedge their positions.
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