Drift's BET Platform Revolutionizes Prediction Markets on Solana Blockchain

By: Isha Das

DeFi protocol Drift has introduced an innovative prediction market called BET on the Solana blockchain. This new platform allows users to bet on the outcomes of real-world events, functioning similarly to perpetual trading in the crypto space. Cindy Leow, Drift Protocol's co-founder, noted, “Taking real events into permissionless financialization opens up the door to bet on everything from making a hyperlocalized bet with a few friends to trying to predict the outcome of a US presidential election.”

BET distinguishes itself from other prediction markets by permitting users to utilize over 30 different cryptocurrencies, such as USDC and SOL, as collateral. Users can also earn a yield on their assets before the determination of the event's outcome. Besides, the platform allows users to hedge their bets with “structured bets,” enabling them to take a long position in the prediction market while shorting Bitcoin. Moreover, the rewards system called FUEL has been implemented to boost user engagement and trading activities.

While currently focused on the US elections, Drift's BET platform plans to venture into other areas, including Formula 1 and various crypto and cultural events. The growing popularity of decentralized prediction markets like BET and Polymarket showcases an increasing trend where users can bet on anything from sports outcomes to geopolitical incidents.

Vitalik Buterin, co-founder of Ethereum, has lauded prediction markets as a leading social epistemic technology of the 2020s, saying, “[These markets are] truth-seeking and democratic, built around open public participation rather than pre-selected elites.” However, the rise of these markets has attracted significant regulatory scrutiny. The US Commodities Futures Trading Commission (CFTC) and lawmakers like Senator Elizabeth Warren have voiced concerns about the public interest impact and potential need for restrictions. In contrast, major crypto industry players such as Coinbase and Gemini argue that these regulatory efforts are economically unsound.