🔎What is Pubhouse?

Pubhouse is a meta prediction market platform allowing anyone to permissionlessly create and trade short-term price/odds movements of Polymarket event markets.

🎟️ Key Features

• Every Pubhouse market resolves in either one, four, or six hours based on Polymarket odds at the end time. The markets resolve on parimutuel logic, with winners of the market receiving the proportion of the losing side's bets based on their number of shares.

• Traders acquire shares from the market's two-token economy, where YES and NO shares trade on separate constant product bonding curves, as pioneered by Uniswap v2, where X * Y = K.

• The creator of the markets provides the initial liquidity of the market worth ~$10 in $PUB (or other token set as the primary markets token at the time), with the initial market cap of the YES and NO sides being initialised at ~$50,000 market cap, allowing early traders to capture uncapped upside and bet on the attention of the market.

• Traders can only buy shares in either pool and realize profits after market resolution. The bonding curve formula adjusts prices based on supply and demand—as traders buy YES shares, the YES pool's share reserves decrease and quote reserves increase, pushing the YES price higher, and vice versa. Trades on one side do not impact the price of the other side. This creates organic price discovery driven purely by trading activity.

• All trading fees are distributed to the platform users. 80% of the trading fees are awarded to the $PUB token stakers, while 20% of the fees are provided to market creators.

🎨 Creating Markets

There are two methods to initialize markets on Pubhouse:

• Use Browse tab to look through the Polymarket events and select a market you want to initialize.

• Copy and Paste Polymarket's event link into the Pubhouse UI.

Creators of the markets will be required to seed the new market with $10~ worth of $PUB token or another token made available by the protocol during a specific timeframe. In return, the creators will receive 20% of the total trading fees traded in the market.

To avoid 'stale odds' when initializing the market, Pubhouse will refetch the most recent Midpoint Price available for that market.

The predictions always concern the YES price movement i.e. whether the price of YES will be higher or lower in 1/4/6 hours.

💹 Trading

• Traders can purchase Yes and No shares in the event market at a price defined by the virtual automatic market maker (vAMM) pools.

• Trading activity directly impacts the prices of the specific outcome, either Yes or No.

• The positions are final and cannot be closed before the market resolution, only increased.

🎉 Resolution

Every market resolves based on fair parimutuel rules:

• The losing side's collateral is divided among the winners of the market, based on their share number.

• When resolving, Pubhouse will use Polymarket's historical price feed and use the closest available price point to the market's end time.