Victor Ugochukwu · Oct 27, 2020 . 6min read
Augur V2 Successfully Launched, the Journey So Far
V2 has all the features of a booming DeFi market including the Interplanetary File System (IPFS), 0x Mesh, MakerDAO’s dai and Uniswap’s v2 oracle network finely blended in.
By Victor Ugochukwu · Jul 29, 2020 . 9min read
Launched as the first-ever ICO on Ethereum in 2015 issuing the REP token, Augur V2 successfully launches. How has it fared? What are the new features users should expect on the prediction markets protocol enhanced by smart contract technology?
Augur raised a total of about $5.2 million for the development of the platform. It achieved this by selling more than one million ether tokens and 12,000 bitcoins used to pay for the tokens. This amounts to 11,000 REP tokens. 80% went to the ICO contributors and the rest apportioned between the founding team and Estonian-based and privately held Forecast Foundation.
Augur Version 1 was slow, unscalable and mired with flaws.
Launched on July 9, 2018, the first version of Augur described as “a very slow, expensive, difficult to use version,” by Joey Krug, the co-founder held high promises. Users could wait between six hours and 12 hours to download the app. When they do to create markets, determine potential outcomes and make bets denominated Ethereum’s volatility is still there. Beyond the flaws, it showed that a gambling platform without bookies was possible. This opened the possibility of building any kind of market could on it. Prior, none of these has ever been tested.
In hindsight, they created a total of 2,895 markets on version one. This generated a volume of 69,662 ether, valued between $15 million to $20 million depending on market volatility. 2,609 unique visitors made more than 15,000 transactions. And 650 reporters staking 1,385,843 REP tokens for fees resulting in 5,758 REP in disputes. When compared with other popular prediction markets and the bookies out there, the apparent problem is liquidity. Centralized prediction market platforms have caps placed on them per contract. They also face limits as to who can wager on them and all sorts of other limiting regulations. With decentralized prediction markets like Augur, they can avoid all these but scaling and volatility are still there to address.
Augur V2 Launch: A stack of features
After five years Augur V2 launches with protocol contracts deployed on the Ethereum Mainnet. And now with V2 has all the features of a booming DeFi market including the Interplanetary File System (IPFS), 0x Mesh, MakerDAO’s dai and Uniswap’s v2 oracle network finely blended in.
Augur is one of the first dapps to integrate 0x Mesh, an on-chain relay order book system for betting.
Also, Augur now has a stable betting medium, USD value using DAI. This is a decentralized stablecoin pegged against cryptocurrencies as collaterals. This helps to hedge against the volatility Augur v1 users experienced since they had to open positions with Ether which is a volatile asset.
Added to the mix also is the fact that Augur V2 launch will use Uniswap as a price oracle service. Uniswap is an Ethereum-based automated market maker that uses an elegant “constant product” design to calculate the exchange rate for any trade such that the value of its token reserves stays equivalent both before and after the trade transpires. All decentralized applications need to have prices given to them from a feed, and that’s one function Ethereum, and that is the function of Uniswap in V2.
For example, a user with ease could create a DAI/REP trading pair to purchase REP with DAI or vice versa without any hassle.
Complete decentralization is the ultimate goal.
Even though the co-founders’ Joey Krug and Jack Peterson still have some influence on how the development of the protocol, they are determined to walk the talk by moving forward with full decentralization. As Krug says
“Someday the foundation will run out of money and basically, kind of disappear, and this becomes an ongoing community-developed open-source software project. At which point, we could maybe create a for-profit entity on top that does actually try to aggressively make money.”Joey Krug, co-founder of the Augur Project as found in the Forbes article authored by Michael del Castillo
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Victor Ugochukwu · Oct 26, 2020 . 5min read