Dynamic Market Pricing (AMM)
Understanding how our Automated Market Maker pricing system works.
How Prices Work
DarkBet uses a Fixed Product Market Maker (FPMM) for fair, dynamic pricing.
- Prices determined by pool balance ratios
- YES price + NO price = 0.01 BNB always
- More bets on one side = higher price for that outcome
- Each bet shifts the market slightly
Betting Options
Default: Market Price
Buy 1 share at current market price - quick and simple betting.
Custom: Amount-Based
Enter any BNB amount, get calculated shares based on current market price.
- Real-time quotes with 30-second validity
- Shares = Amount Paid ÷ Current Price
Example Calculation
Example Scenario
If YES is trading at 0.006 BNB and you bet 0.01 BNB:
- YES Price: 0.006 BNB
- Your Bet: 0.01 BNB
- Shares Received: 0.01 ÷ 0.006 = ~1.67 shares
- If YES wins: 1.67 × 0.01 = 0.0167 BNB payout
AMM Mechanics
Price Impact
Larger bets have more price impact, creating natural market dynamics and preventing manipulation.
Liquidity Provision
All participants contribute to market liquidity, ensuring continuous trading availability.
Fair Pricing
Algorithmic pricing ensures fair market value based on supply and demand.
Arbitrage Opportunities
Price imbalances create opportunities for market efficiency and fair value discovery.
Market Dynamics
Bullish Market (More YES bets)
YES price increases, NO price decreases - reflecting market sentiment.
Bearish Market (More NO bets)
NO price increases, YES price decreases - indicating negative sentiment.
Balanced Market
Equal betting on both sides results in balanced pricing around 0.005 BNB each.
Advantages of AMM Pricing
- Fair, algorithmic pricing based on market supply and demand
- Continuous liquidity provision from all participants
- Resistant to manipulation due to algorithmic pricing
- Transparent pricing mechanism visible to all users
- Efficient price discovery through market dynamics