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TotemFi ($TOTM): Combining prediction markets and DeFi

TotemFi is a blockchain-based prediction platform that operates on both the Ethereum and BSC networks, interfacing the prediction markets world with the decentralized finance (DeFi) ecosystem.

In the predictions market, it’s either you agree with the system or leave the space. The ecosystem exists as a closed cave without a way to know whether you’ll get to enjoy the rewards even if you make a correct prediction. Blockchain technology came to the forefront to offer multiple solutions to the problems of traditional markets, and the predictions market should not be left out. Unfortunately, decentralized projects in the prediction world are yet to solve critical issues such as counterparty risks, accessibility, and bias.

Fortunately, TotemFi is among the few reliable blockchain-based prediction platforms that aim to solve significant problems in traditional prediction markets through the use of, for instance, audited smart contracts. Additionally, it guards against cases where an individual’s prediction gets influenced by another. In this guide, we shall take a comprehensive tour of this project.

Background

Jolyon Layard leads the team as the CEO. He has a bachelor’s degree in mathematics and economics. Before joining TotemFi, he was a corporate tax associate at Grant Thornton LLP, CFO at Happy Space UK, and worked at One Young World in different capacities.

Other key members include Harry Horsfall (CMO), Henry (CBO), and Dan (PR & Community). Note that the team members’ backgrounds cut across various industries such as cryptocurrency, brand management, and communications.

DuckDao incubates the project in collaboration with Trustology, Ferrum Network, BlockPass, Certik, Lauchpool, among others. Its list of strategic partners includes Bluenode Capital, Alphabit, MoonWhale, and Nabais Capital.

What Is TotemFi?

TotemFi is a blockchain-based prediction platform operating on both the Ethereum network and Binance Smart Chain (BSC). Notably, the protocol interfaces the prediction markets world with the decentralized finance (DeFi) ecosystem. TotemFi offers solutions to five major ills in the prediction markets world.

  1. Financial risk – The platform guarantees that stakers will receive their incentives. As such, there is no way a staker will lose their input in the protocol.

  2. Incentivization – The conventional prediction market fails to form a clear incentivization route for individual and group participants. TotemFi breaks this hurdle by rewarding both parties for logical predictions.

  3. Accessibility – TotemFi uses decentralized applications (Dapps) to reduce and hopefully eradicate friction during the prediction process. It does this using a professional but easy-to-use user interface. The protocol take’s it a level higher by not penalizing inaccurate projections.

  4. Echoed influence – This happens when the market is influenced by factors such as partial media highlights and politics. The effect is largely felt on centralized prediction networks. To counter the impact, the project employs decentralization. Consequently, it distributes viewpoints and media sources.

  5. Counterparty risk – Verified and audited staking smart contracts help in building a trustless prediction platform. In return, it boosts user confidence and ensures that participants maintain ownership and control of their stake.

How does TotemFi Work?

The protocol works by interacting with various critical sections. Some of the areas include staking pools, prediction ranges, as well as results and tie breakers.

Staking Pools

TotemFi staking pools provide a safe place for users to deposit their coins while waiting for the prediction of the price of cryptocurrencies like Bitcoin. These pools have varying maturity durations between 15 and 60 days. However, a pool only takes to the skies if it either reaches the maximum time limit or the pool’s allocation becomes full.

Furthermore, the maturity date marks the end of the prediction date. For instance, a pool with a maturity length of sixty days means participants must predict the price of Bitcoin (BTC) in the next two months.

Notably, TotemFi uses a single data source such as an oracle to check the prices of the assets, which enhances consistency and trust.

TotemFi automatically births another pool with similar specifications to provide timeliness once a pool hits its allocation threshold.

Prediction Range

The range determines how far a participant can go with their price forecast. The number of the protocol’s native tokens, TOTM, held by a participant determines their projection range. More tokens mean a higher range and vice versa.

However, TotemFi’s step function determines the range. The function gives the correlation between the TOTM stake size, the step size, and the range increase.

Results and Tie Breaker

In a prediction, the possibilities of a tie are very high. In case of a tie, the first person to provide the correct prediction becomes the winner. Also, this process applies in case a tie situation involves more than one participant. In such a scenario, users ranking is done in a chronological format.

Staking Rewards and Price Pools

Stakers receive guaranteed incentives. However, the rewards depend on the pool’s maturity time, staked amount, and staking time. Assuming that a staker lets their stake run peacefully for their entire pool maturity time, they’re likely to receive a tentative annual percentage rate (APR) of 60%, 65%, and 75% for pools with a maturity time of 15, 30, and 60 days, respectively.

On the other hand, the prize pool contains both BTC and TOTM tokens. For example, in the case of a correct prediction, the winner takes home 0.03375 BTC and 1,687 TOTM coins, while the third in the winning queue gets 0.0110 BTC and 495 TOTM tokens.

TotemFi Tokens (TOTM)

TOTM has a fixed supply of 10 million tokens. This entire amount was excavated during the token generation event (TGE).

The tokens go to advisors (8.5%), community development (10%), team (15%), seed (4.5%), and public sale (4.5%). Additionally, staking rewards get 16.5%, while strategic development, liquidity pool, and private sale get 15%, 6%, and 20%, respectively.

TOTM tokenomics
TOTM tokenomics (Image credit: TotemFi)

Notably, the allocated coins are locked for varying months. For example, TOTM issued to staking have a lockup period of 48 months, while those meant for private sale have a five-month lockup period.

Apart from rewarding predictions, TotemFi’s native asset acts as a governance token. Therefore, its holders are capable of taking part in critical decisions such as pool mechanics.

Conclusion

TotemFi is set to revolutionize an industry that is relatively underserved. Fortunately, a decentralized approach allows participants to blame themselves for not getting the forecasts right. Additionally, its use of blockchain increases participants’ confidence.

Moreover, guaranteed incentives for stakers, as well as not penalizing incorrect predictions, allows everyone to participate, opening the door to broader adoption. Most importantly, the experience of the TotemFi core team, incubators, and advisors sets the project apart from other blockchain-based prediction networks targeting.

The information provided in this article is intended for general guidance and information purposes only. Contents of this article are under no circumstances intended to be considered as investment, business, legal or tax advice. We do not accept any responsibility for individual decisions made based on this article and we strongly encourage you to do your own research before taking any action. Although best efforts are made to ensure that all information provided herein is accurate and up to date, omissions, errors, or mistakes may occur.

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