Buy Trades

Purpose

The Buy function allows users to purchase shares of a specific outcome in a prediction market. The price of shares is dynamically adjusted based on the current state of the market, reflecting demand and supply.

Workflow

1. Input Parameters:

   • Market ID.

   • Outcome to buy (e.g., YES or NO).

   • Amount of collateral the user is willing to spend.

2. Price Calculation

   • The AMM calculates the cost of the desired shares using the constant.

3. Pool Update:

   • Collateral is added to the pool for the selected outcome.

   • The share pool is adjusted to maintain the constant product.

4. Share Allocation:

• The user receives the purchased shares in their wallet.

1. Fee Deduction:

• A small fee is deducted and distributed to liquidity providers or the platform treasury.