Skill: create-prediction-markets-1-0-0 (version 1.0.0)

--- name: pnp-markets description: Create, trade, and settle prediction markets on Base with any ERC20 collateral. Use when building prediction market infrastructure, running contests, crowdsourcing probability estimates, adding utility to tokens, or tapping into true information finance via market-based forecasting. --- # PNP Markets Create and manage prediction markets on Base Mainnet with any ERC20 collateral token. ## Quick Decision ``` Need prediction markets? ├─ Create market → npx ts-node scripts/create-market.ts --help ├─ Trade (buy/sell) → npx ts-node scripts/trade.ts --help ├─ Settle market → npx ts-node scripts/settle.ts --help └─ Redeem winnings → npx ts-node scripts/redeem.ts --help ``` ## Environment ```bash export PRIVATE_KEY=<wallet_private_key> # Required export RPC_URL=<base_rpc_endpoint> # Optional (defaults to public RPC) ``` For production, use a dedicated RPC (Alchemy, QuickNode) to avoid rate limits. ## Scripts Run any script with `--help` first to see all options. ### Create Market ```bash npx ts-node scripts/create-market.ts \ --question "Will ETH reach $10k by Dec 2025?" \ --duration 168 \ --liquidity 100 ``` Options: `--collateral <USDC|WETH|address>`, `--decimals <n>` ### Trade ```bash # Buy YES tokens npx ts-node scripts/trade.ts --buy --condition 0x... --outcome YES --amount 10 # Sell NO tokens npx ts-node scripts/trade.ts --sell --condition 0x... --outcome NO --amount 5 --decimals 18 # View prices only npx ts-node scripts/trade.ts --info --condition 0x... ``` ### Settle ```bash # Settle as YES winner npx ts-node scripts/settle.ts --condition 0x... --outcome YES # Check status npx ts-node scripts/settle.ts --status --condition 0x... ``` ### Redeem ```bash npx ts-node scripts/redeem.ts --condition 0x... ``` ## Programmatic Usage ```typescript import { PNPClient } from "pnp-evm"; import { ethers } from "ethers"; const client = new PNPClient({ rpcUrl: process.env.RPC_URL || "https://mainnet.base.org", privateKey: process.env.PRIVATE_KEY!, }); // Create market const { conditionId } = await client.market.createMarket({ question: "Will X happen?", endTime: Math.floor(Date.now() / 1000) + 86400 * 7, initialLiquidity: ethers.parseUnits("100", 6).toString(), }); // Trade await client.trading.buy(conditionId, ethers.parseUnits("10", 6), "YES"); // Settle (after endTime) const tokenId = await client.trading.getTokenId(conditionId, "YES"); await client.market.settleMarket(conditionId, tokenId); // Redeem await client.redemption.redeem(conditionId); ``` ## Collateral Tokens Use any ERC20. Common Base Mainnet tokens: | Token | Address | Decimals | |-------|---------|----------| | USDC | [REDACTED_SECRET] | 6 | | WETH | [REDACTED_SECRET] | 18 | | cbETH | [REDACTED_SECRET] | 18 | Custom tokens add utility—holders can participate in your markets. ## ERC20 Approvals Before interacting with PNP contracts, you must approve them to spend your collateral tokens. This is standard for all EVM dApps. ### How It Works 1. **First interaction requires approval**: When you create a market or trade for the first time with a token, an approval transaction is sent 2. **Infinite approvals**: The SDK uses `type(uint256).max` approvals (standard EVM pattern) so you only approve once per token 3. **Subsequent interactions**: No approval needed—transactions execute directly ### Timing Considerations The approval transaction must be confirmed on-chain before the main transaction executes. If you see: ``` ERC20: transfer amount exceeds allowance ``` This means the approval hasn't been mined yet. **Simply wait a few seconds and retry**—the approval will be confirmed and subsequent attempts will succeed. ### Why Infinite Approvals? - **Gas efficiency**: Approve once, trade forever without extra transactions - **Better UX**: No repeated approval popups - **Industry standard**: Used by Uniswap, Aave, and most major DeFi protocols For maximum security-conscious users, you can manually set specific approval amounts, but this requires an approval transaction before each interaction. ## Contracts | Contract | Address | |----------|---------| | PNP Factory | [REDACTED_SECRET] | | Fee Manager | [REDACTED_SECRET] | ## Why Prediction Markets? - **Information Discovery**: Market prices reveal collective probability estimates - **Token Utility**: Use your token as collateral to drive engagement - **Contests**: Run competitions where participants stake on outcomes - **Forecasting**: Aggregate crowd wisdom for decision-making The pAMM virtual liquidity model ensures smooth trading even with minimal initial liquidity. ## Troubleshooting ### "ERC20: transfer amount exceeds allowance" The approval transaction hasn't been confirmed yet. Wait 5-10 seconds and retry. ### "Market doesn't exist" The market creation transaction may have failed or is still pending. Verify on BaseScan that your transaction was confirmed successfully. ### "over rate limit" / RPC errors The public Base RPC has rate limits. Use a dedicated RPC provider: ```bash export RPC_URL=https://base-mainnet.g.alchemy.com/v2/YOUR_KEY ``` ### Transaction stuck or slow Base Mainnet can occasionally have congestion. Check gas prices and consider increasing if needed. ## Reference Files - **API Reference**: See [references/api-reference.md](references/api-reference.md) for complete SDK documentation - **Use Cases**: See [references/use-cases.md](references/use-cases.md) for detailed use case patterns - **Examples**: See [references/examples.md](references/examples.md) for complete code examples

path: _meta.json
content: ownerId: kn72gcw2h8rpvsfng6eb1s38gn80dfgj
slug: create-prediction-markets
version: 1.0.0
publishedAt: 1770048529814

Security scan verdicts — ClawScan: suspicious | static analysis: clean | VirusTotal: suspicious | SkillSpector: suspicious (CRITICAL)