Project documentation link :

https://prophet.mintlify.app

Prophet — Autonomous Prediction Market Infrastructure on 0G

Prophet is an autonomous, AI-native YES/NO prediction market protocol built on 0G Labs.

Prophet is market infrastructure for autonomous prediction markets. It combines on-chain AMM trading, protocol-owned liquidity, AI-assisted resolution, decentralized storage, and autonomous agents into one system.

Users can turn real-world questions into tradable markets: sports, crypto, AI, politics, culture, and future events. Each market has two assets: YES shares and NO shares. These shares trade between $0 and $1 through an on-chain AMM, and after resolution the winning side redeems for $1 while the losing side becomes worthless.

Once a market is created, Prophet’s infrastructure can handle the rest:

• question validation

• market creation

• liquidity allocation

• YES/NO price discovery

• trading execution

• oracle reasoning

• settlement

• fee recycling

• liquidity return

The goal is to make prediction markets that can operate without human market makers, manual liquidity coordination, or opaque resolution committees.

The Problem

Prediction markets are powerful because they convert human beliefs into prices. But today’s systems still have deep infrastructure problems.

First, there is the oracle problem. Someone must decide what actually happened. Many prediction markets rely on human committees, token voting, or centralized administrators. This is slow, dispute-prone, and difficult to audit.

Second, there is the liquidity problem. New markets often launch with little or no liquidity. If no human LP shows up, the market dies before it can become useful.

Third, there is the accountability problem. Even when a market resolves correctly, the reasoning behind that resolution is often scattered, temporary, or controlled by a centralized service.

Prophet solves these problems using 0G as the core infrastructure layer.

How Prophet Uses 0G

Prophet uses three major 0G components.

1. 0G Chain — Settlement and Market Execution

Prophet’s smart contracts are deployed on 0G Chain.

The on-chain system includes:

• ProphetFactory for market creation

• MarketContract for YES/NO AMM trading

• LiquidityPool for protocol-owned liquidity

• PositionVault for sealed/private position infrastructure

• PayoutDistributor for payout distribution flows

0G Chain handles:

• market creation

• USDT collateral movement

• YES/NO share minting and selling

• AMM reserve updates

• trading fees

• settlement

• redemption

• liquidity return after market close

The AMM is designed around real prediction market behavior. Prices move based on reserve imbalance. Small pools create higher slippage. Large pools create smoother trading. YES and NO prices stay bounded between $0 and $1, and the contract protects against overpaying sellers in highly imbalanced markets.

This makes Prophet behave like a real prediction market AMM, not a fixed-odds betting app.

2. 0G Compute — AI Market Intelligence

Prophet uses 0G Compute for the intelligence layer.

The system integrates the @0glabs/0g-serving-broker SDK and uses 0G’s OpenAI-compatible compute provider endpoint for inference.

0G Compute powers:

• market question validation

• resolvability checks

• resolution-source suggestions

• oracle reasoning

• market-maker intelligence

• provider attestation checks

• structured JSON reasoning outputs

The Oracle Agent uses 0G Compute to evaluate market outcomes after deadlines. It gathers evidence, reasons through the result, produces a verdict and confidence score, then posts the outcome on-chain.

The Market Maker Agent uses 0G Compute as part of the autonomous liquidity system. It can evaluate new markets, reason about credibility and activity, and help decide how protocol liquidity should be allocated.

This turns 0G Compute into the intelligence engine behind Prophet’s autonomous market operations.

3. 0G Storage — Permanent Market Memory

Prophet uses 0G Storage as the accountability layer.

Prediction markets need memory. A market should not only resolve; it should preserve why it resolved that way.

Prophet stores:

• market metadata

• AI-generated market summaries

• oracle reasoning records

• resolution evidence

• market-maker state

• price snapshots

• agent working state

This gives every market a durable audit trail. A judge, user, or external protocol can inspect the reasoning behind a resolution instead of blindly trusting an operator.

The frontend and agents read from 0G Storage so market metadata and oracle reasoning remain verifiable outside the centralized app layer.

Prophet is already deployed on the 0G Galileo testnet.

ProphetFactory
Deploys and registers new markets
0x069e6203ef2CEB6aB7eC23432f9693eADdE0Af7C
https://chainscan-galileo.0g.ai/address/0x069e6203ef2CEB6aB7eC23432f9693eADdE0Af7C

MarketContract
Per-market YES/NO AMM trading and settlement logic
Deployed per market by the factory

LiquidityPool
Holds protocol-owned USDT liquidity for autonomous market making
0xda95ad4cA75eC78fE71D5Be970c8c3956E32B018
https://chainscan-galileo.0g.ai/address/0xda95ad4cA75eC78fE71D5Be970c8c3956E32B018

Mock USDT
Testnet collateral used for trading
0xc2B0D2A7e858F13B349843fF87dBF4EBF9227F49
https://chainscan-galileo.0g.ai/address/0xc2B0D2A7e858F13B349843fF87dBF4EBF9227F49

PositionVault
Sealed/private position infrastructure
0xb941a917B0a345B87f30598589Cc71b5ff9b72b9
https://chainscan-galileo.0g.ai/address/0xb941a917B0a345B87f30598589Cc71b5ff9b72b9

PayoutDistributor
Payout distribution support contract
0x33a32264031c6CE010b200227aC8119E5156b405
https://chainscan-galileo.0g.ai/address/0x33a32264031c6CE010b200227aC8119E5156b405

Autonomous Liquidity

Prophet’s biggest innovation is protocol-owned autonomous liquidity.

Traditional prediction markets ask:

“Will human LPs provide enough liquidity?”

Prophet asks:

“Can the protocol become the market maker itself?”

The flow is:

Users trade
→ protocol earns fees
→ liquidity pool grows
→ agent deploys liquidity
→ markets become deeper
→ more users trade
→ more fees accrue

This creates a self-reinforcing liquidity flywheel.

The LiquidityPool holds protocol-owned USDT. The Market Maker Agent monitors markets, allocates liquidity, tracks AMM state, queues transactions safely, and returns remaining liquidity after settlement.

This matters because prediction markets fail when markets are not tradable. Prophet makes markets tradable from the beginning through autonomous liquidity allocation.

YES/NO AMM Design

Every Prophet market has two tradable assets:

• YES shares

• NO shares

Each share trades between $0 and $1.

If YES trades at $0.70 and NO trades at $0.30, the market is pricing YES as the more likely outcome.

When users buy YES, YES becomes scarcer in the AMM and its price rises. When users buy NO, NO becomes scarcer and its price rises.

This means prices are not fake percentages. They are real AMM-generated share prices backed by liquidity and affected by trade size.

If a market has only $50 of liquidity, a large trade should move the price aggressively. That is not a bug. That is slippage, and it is necessary for solvency.

Prophet’s contracts are designed around this principle: liquidity is finite, prices must move, and the protocol must not create payouts it cannot honor.

Privacy and Sealed Markets

Prophet also includes sealed-position infrastructure through PositionVault.

This is the foundation for privacy-preserving markets where user positions can be encrypted at placement and revealed later during settlement. The long-term goal is to combine AMM-based liquidity with sealed execution so users can trade without exposing sensitive intent to front-runners.

This privacy layer is especially important for serious information traders. If someone has real edge, public position visibility can punish them by revealing their insight. Prophet’s sealed-market architecture is designed to protect that edge and make prediction markets more honest.

Why Prophet

Prophet is not a generic AI wrapper and it is not just another prediction market UI.

It uses 0G as a full-stack autonomous market infrastructure layer:

• 0G Chain executes markets and settlement

• 0G Compute powers validation, oracle reasoning, and market intelligence

• 0G Storage preserves market memory and oracle accountability

• autonomous agents operate liquidity and resolution flows

• smart contracts enforce deterministic trading and settlement

The result is a prediction market system that can create, trade, reason, resolve, and recycle liquidity with minimal human intervention.

Prophet shows what 0G is uniquely positioned to enable: autonomous financial infrastructure where AI agents do meaningful work, smart contracts enforce the rules, decentralized storage preserves the evidence, and users can verify the whole system.

Prophet is building toward a future where markets are not manually operated platforms.

They are autonomous information engines.

WHAT WE BUILT — DELIVERABLES

Smart Contracts (Deployed on 0G Galileo Testnet)

All contracts deployed and verifiable on 0G ChainScan Galileo Testnet

Frontend (Live)

• Market browsing — all active markets displayed with live YES/NO prices

• Market creation — question → 0G Compute validation → contract deployment in one flow

• Market lookup by creator address

• Oracle reasoning viewer — fetches full JSON reasoning from 0G Storage and displays it

• Wallet connection on 0G testnet via RainbowKit + wagmi

0G Storage Integration (Live)

• Oracle reasoning JSON uploaded to 0G Storage Log Layer after every resolution

• Root hash written on-chain as verdictReasoningHash

• Frontend reads hash from contract fetches payload from 0G Storage → displays reasoning

• Full verifiable linkage between on-chain state and off-chain evidence

0G Compute Integration

• Oracle agent wired to 0G Compute SDK (@0glabs/0g-serving-broker)

• Inference calls routed to Qwen 2.5 on testnet

• Provider TEE attestation verified before each call

• Structured JSON oracle prompts implemented and tested
  
  
  ROADMAP

  Phase 1 — Hackathon MVP (Current)

  • Core smart contracts deployed on 0G testnet

  • Market creation end-to-end (frontend → contract)

  • Market display and creator lookup

  • 0G Storage integration for oracle reasoning

  • LiquidityPool contract with AI-scored allocation

  • 0G Compute oracle agent — final wiring (in progress)

  • Market maker agent with live repricing

  • TEE position sealing full flow

  • End-to-end demo: create → bet → resolve → payout

  Phase 2 — Post-Hackathon V1 (Month 1-2)

  • Multi-category markets (crypto, sports, politics, finance live)

  • Full challenge and dispute system for oracle verdicts

  • LP dashboard — deposit, track yield, withdraw

  • Oracle reputation scoring — public track record on 0G Storage

  • Mobile-responsive frontend

  • 0G Chain mainnet deployment

Bootstrapped — Solo builder, no external funding. Seeking ecosystem grants and seed funding to bring Prophet to mainnet post-hackathon.