BaseCase

https://www.basecase.gg/

The Prediction Market that bootstraps itself.

The Future of Prediction Markets

BaseCase is a revolutionary prediction market protocol that enables anyone to create and trade markets without upfront liquidity. Using our novel Shadow Liquidity mechanism, markets bootstrap themselves through user participation.

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How It Works

🌱 Create

Launch markets instantly with zero capital. Shadow Liquidity provides virtual reserves for immediate trading.

📈 Trade

Buy or sell outcome shares using a CPMM bonding curve. Prices adjust dynamically with demand.

🎓 Graduate

At 100% solvency, markets upgrade to Order Book trading with real ERC-20 outcome tokens.

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Protocol Architecture

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Key Metrics

Metric	Value	Description
Virtual Reserve	1,000 USDC	Initial shadow liquidity per market
Bonding Fee	0%	No trading fees during bonding
Graduation Fee	2%	Fee on vault at graduation
Graduation Threshold	100% Solvency + 20% min each side	Required for upgrade
Trading Fee	~0.2%	Taker fee on order book trades
Creator Revenue	25% of fees	Incentive for market creators

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Core Innovation

Shadow Liquidity

Markets start with virtual reserves instead of locked capital. The protocol simulates a Constant Product Market Maker using:

$$virtualYES \times virtualNO = k$$

Users trade against this virtual pool, with all USDC deposits going into a central vault. Solvency is guaranteed when:

$$\frac{VaultBalance}{MAX(ShadowYES, ShadowNO)} \geq 100\%$$

Creator Incentives

Market creators earn 25% of protocol fees:

Fee Type	Total	Creator	Stakers	Protocol
Graduation	2%	0.5%	0.5%	1%
Order Book	~0.2%	~0.05%	~0.05%	~0.1%

Note: Bonding phase has 0% trading fees. Fees are only collected at graduation.

This creates strong incentives to create and promote successful markets.

Solvency Model

The protocol can always pay winners because:

1. CPMM mechanics naturally accumulate fees

2. Virtual reserves are calibrated to cap max liability

3. Graduation only occurs when vault ≥ max payout

4. Resolution is oracle-verified and immutable

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Quick Links

📖 Getting Started

Understand the protocol fundamentals and start trading

🔧 Technical Docs

Smart contract interfaces and system architecture

❓ FAQ

Common questions answered

📋 Protocol Flow

Complete lifecycle from creation to resolution

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Build With Us

Resource	Link
GitHub	github.com/BaseCases/BaseCase
Network	Base (Coinbase L2)
Collateral	USDC
Oracle	UMA Optimistic Oracle

Ready to dive in? Start with the Protocol Overview to understand how BaseCase works.