pnp-markets

# 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 | `0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913` | 6 | | WETH | `0x4200000000000000000000000000000000000006` | 18 | | cbETH | `0x2Ae3F1Ec7F1F5012CFEab0185bfc7aa3cf0DEc22` | 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 | `0x5E5abF8a083a8E0c2fBf5193E711A61B1797e15A` | | Fee Manager | `0x6f1BffB36aC53671C9a409A0118cA6fee2b2b462` | ## 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