How it works

Platform mechanics and flow

How FrensPool Works

This document explains the mechanics behind FrensPool, from pool creation to resolution and payout.

Platform Overview

FrensPool operates as a decentralized application (dApp) on the Monad blockchain. The core functionality is powered by smart contracts that handle pool creation, voting, resolution, and fund distribution.

The FrensPool Process

1. Pool Creation

The process begins when a user creates a new prediction pool:

1. The creator defines a question (e.g., "Will ETH hit $5k before July 2025?")

2. Sets a buy-in amount (e.g., 0.1 MON)

3. Sets a deadline for voting

4. Chooses an oracle type for resolution (Manual, Chainlink, or Social)

5. Pays the buy-in amount to create the pool

6. The creator automatically votes YES on their own prediction

2. Participation

After a pool is created:

1. Other users can view the pool details

2. To participate, users pay the specified buy-in amount

3. When participating, users vote either YES or NO on the prediction

4. All funds are held in the smart contract until resolution

5. Users can see the current vote distribution and total pool amount

3. Resolution

When the deadline passes:

1. The pool status changes from "Open" to "Closed"

2. The resolution process begins based on the oracle type:

   • Manual: The pool creator manually determines the outcome

   • Chainlink: The outcome is determined automatically by checking the specified Chainlink price feed

   • Social: Trusted participants vote on the outcome (currently defaults to manual resolution)

3. The pool status changes to "Resolved" with the final outcome (YES or NO)

4. Payout

After resolution:

1. The winning side (those who voted correctly) can claim their share of the pot

2. The share is proportional to the number of winning participants

3. A small platform fee (0.5%) is deducted from the total pool

4. Funds are automatically transferred to winners' wallets when they claim

Smart Contract Mechanics

The FrensPool smart contract handles several key functions:

• Pool Storage: Maintains all pool data on-chain

• Fund Management: Securely holds all buy-in amounts

• Vote Tracking: Records all votes and their amounts

• Resolution Logic: Determines winners based on the oracle outcome

• Payout Calculation: Calculates each winner's share of the pot

• Claim Verification: Ensures only winners can claim their share

Oracle Types in Detail

Manual Oracle

• The pool creator manually sets the outcome

• Best for subjective questions or when trusted resolution is acceptable

• Requires the creator to be honest and active

Chainlink Oracle

• Uses Chainlink price feeds to automatically determine outcomes

• Best for price-based predictions (e.g., "Will ETH exceed $5k?")

• Completely trustless and automated

• Requires a valid Chainlink feed address and target price

Social Oracle

• Outcome determined by consensus among trusted participants

• Best for complex questions that can't be resolved by price feeds

• Currently implemented as manual resolution

• Future versions will support multi-signature resolution

Fee Structure

FrensPool charges a minimal platform fee:

• 0.5% of the total pool amount

• Deducted only from the winning pot

• Used to maintain and improve the platform

Technical Safeguards

FrensPool implements several safeguards:

• Deadline Enforcement: Voting closes automatically at the deadline

• Double-Voting Prevention: Users can only vote once per pool

• Correct Buy-in Verification: System ensures users pay the exact buy-in amount

• Winner-Only Claims: Only users who voted correctly can claim winnings