Introduction

Another interesting DeFi primitive being used to drive retail adoption. DeFi + elements of Prediction Markets.

At its core, MAD Market is designed to promote Altcoin PvP (Player vs Player) battles, allowing users to stake their chosen tokens and compete against each other based on the performance of these tokens.

These battles are designed to create an engaging and competitive environment where users can test their market knowledge and prediction skills.

To participate in the upcoming public sale, use my promo code: “Arhat” at MADFia

This is how the PvP battles work

The platform creates various pools, each representing a specific altcoin pair. These matchups can be determined based on factors such as market capitalization, sector, or community interest. For instance, a pool might feature a battle between two prominent DeFi tokens or two popular meme coins with strong community support.

Once the pools are created, users can participate in the PvP battles by staking their tokens in the pool corresponding to the altcoin they believe will outperform its counterpart. The staking process involves users locking up their tokens for the entire duration of the battle, which can vary depending on the specific matchup and pool parameters. In the case of the MEME Madness pilot, each battle lasts for 24 hours, focusing on the price appreciation of the competing tokens within that timeframe.

The performance of each token in a PvP battle is evaluated based on predefined metrics. Price appreciation, which calculates the percentage increase in a token's price over the battle duration, is the most commonly used metric. However, MAD Markets may introduce additional metrics in the future to create more diverse and dynamic PvP battles. These metrics could include trading volume, social media sentiment, or community engagement.

At the conclusion of the battle duration, the platform compares the performance of the two tokens based on the selected metric. The token that demonstrates better performance, such as higher price appreciation, is declared the winner of the PvP battle.

Following the determination of the winning token, MAD Markets employs its unique payout calculation mechanism to determine the payouts for the winning and losing pools. This mechanism incorporates an Equalizing Multiplier and a Max Payout Cap to ensure fair and proportional payouts, taking into account the relative sizes of the pools and the total amount staked.

The payout for the winning pool is then distributed among the users who staked on the victorious token. The distribution is carried out proportionally to each user's stake size, meaning that users with larger stakes will receive a bigger share of the payout.

Conversely, the losing pool's total stake is deducted based on the payout calculated for the winning pool. However, the Max Payout Cap mechanism ensures that the losing pool never loses more than the total amount staked in the winning pool, thereby limiting the potential losses for users who backed the losing token.

To maintain a dynamic environment, MAD Markets continuously creates new PvP battles and matchups. As the platform evolves and expands, it aims to diversify its pool offerings by including a wider range of altcoins, sectors, and performance metrics. This expansion will provide users with a variety of opportunities to compete and demonstrate their market knowledge and insights.

Currently, there’s one pool out:

Why this DeFi + Prediction Markets will Take Off: MadFia Edition

One of the key strengths of the PvP battle system is its ability to tap into the competitive nature of users. By pitting tokens against each other in head-to-head matchups, MAD Market creates a dynamic and exciting environment where users can test their market knowledge and prediction skills. I believe in the long term, this gamification aspect, in this particular vertical, is likely to attract users who may not have previously engaged with traditional DeFi platforms, as it offers a more interactive and entertaining way to participate in the market.

Moreover, the staking mechanism in the PvP battles adds an element of risk and reward that is central to the appeal of trading and investing. By requiring users to lock up their tokens for the duration of the battle, MAD Market ensures that participants have a vested interest in the outcome. This not only increases the stakes and excitement of the battles but also encourages users to carefully consider their choices and perform due diligence before staking their tokens.

The open-ended staking structure of MAD Markets is another notable departure from conventional prediction markets. By allowing users to stake any amount of their chosen tokens without a set contract price, the platform democratizes participation and makes it more accessible to a wider range of users. This flexibility is particularly appealing to those who may not have the capital to meet the minimum contract prices often required by conventional markets.

As MAD Market continues to expand its pool offerings and introduce new performance metrics, the PvP battle system has the potential to become even more diverse and engaging. 

Tokenomics

At the heart of $MADFIA's mission lies the ambition to leverage MEME culture and community enthusiasm as catalysts for DeFi progress.

Unlike conventional meme tokens, $MADFIA incorporates two primary burning mechanisms:

1. Pool Fees: A dedicated portion (initially set at 2.5%) of fees accrued from MAD Markets will be allocated towards the continuous burning of $MADFIA tokens.
2. Transaction Fees: Additionally, a 2% burn rate will be applied to every transaction involving $MADFIA tokens, further contributing to the reduction of the token supply.

If you are unaware of how Pools are usually created, here’s a quick explainer using MADFIA

This is based on internal understanding

Each pool represents a specific matchup between two altcoins, allowing users to stake their tokens and compete based on the performance of their chosen altcoin. The pool creation process is a crucial aspect of the platform, as it sets the stage for user engagement and determines the available trading opportunities.

Final Thoughts

All in all, MadFia presents an intriguing blend of DeFi, prediction markets, and gamification elements that could potentially disrupt the way users engage with altcoin trading and investment. By creating a competitive, stake-based environment where users can put their market knowledge to the test, MadFia adds an exciting layer of interactivity and entertainment to the world of cryptocurrency.

To participate in the upcoming presale token event on June 8th at 8 pm SG time, use my promo code 'Arhat' at MADFia