- Event Rush has a bonding curve-based pricing system that modifies an asset’s price in response to supply and demand.
- There is no need for outside market makers since pricing is determined by trading activity via the bonding curve.
Today, Binance Wallet announced the release of Event Rush, a new third-party dApp integration that allows users to engage in on-chain trading around real-world events. Event Rush, which is based on the 42.space protocol on the BNB Chain, allows users to place positions on news events, sports results, cryptocurrency price objectives, and more using liquid event tokens.
Event Rush has a bonding curve-based pricing system that modifies an asset’s price in response to supply and demand, in contrast to conventional prediction platforms that often depend on preset odds or fragmented liquidity. The associated event tokens are minted or redeemed against the curve with each transaction for a potential result.
On Event Rush, event tokens may be exchanged prior to an event’s resolution, with protocol-level settlement procedures linked to real-world results. There is no need for outside market makers since pricing is determined by trading activity via the bonding curve.
“At Binance Wallet, we’re focused on expanding access to more on-chain experiences that give users more ways to engage with emerging markets,” said Winson Liu, Global Head of Binance Wallet. “Event Rush gives users a new way to express a view and participate in event-driven markets through a fully on-chain experience.”
A hypothetical sporting event displaying the available event tokens for trade (Brazil, France, Spain, and others) is shown above for illustrative reasons only. For instance, 32% of the overall market capitalization of the collateral pool for the sports event is now made up of Brazil event tokens. As shown, a person who purchases a Brazil event token at this time may get a 2.7× return. Both the 2.7× return and the Brazil event tokens’ 32% collateral pool portion fluctuate in response to supply and demand as trade proceeds.
Event Rush is unique in that it offers players two possible methods to gain. In order to purchase early and sell later if demand rises under the bonding curve pricing model, users may first trade the price of event tokens prior to the conclusion of the underlying event. This makes it possible to trade in response to changes in demand, sentiment, timing, or story without having to maintain positions until settlement in order to possibly profit.
Secondly, customers have the option to hold through settlement. The whole amount of the event’s pool—the USDT gathered from all tokens in that event, including value from losing event tokens—is divided among holders of the winning event tokens. Event Rush provides unbounded upside, with potential benefits growing depending on how value is divided across all outcomes, in contrast to typical prediction markets that cap returns at a predetermined payment per share.
Event Rush is a hybrid approach that facilitates both short-term trading and longer-term conviction-based positioning by fusing outcome-based settlement with tradable pricing prior to resolution. Depending on their strategy, users may decide to hold based on conviction, trade around price activity, or mix both.
