ARENA in full.
A prediction-market protocol that resolves itself, funds itself, and trades on questions the on-chain economy is already asking. LMSR-priced, dynamic-b liquidity, fully autonomous. Two closed-loop flywheels mean it bootstraps and sustains itself with zero external capital. The chain is the judge.
What is ARENA
Overview of the protocol and how it works
For Traders
How to trade YES/NO shares and fee structure
For Seeders
Provide liquidity and earn LP fees
The Flywheels
Two closed loops that fund the protocol
Tokenomics
ARENA token supply and burn mechanics
Risks
Important risks to understand before using
What is ARENA
ARENA is a prediction market protocol on Solana. Trade YES/NO on KOL outcomes, memecoin metrics, and other on-chain events. Pricing is set by an LMSR market maker with dynamic b liquidity that scales with market seed. The protocol is governed by crons, not committees.
How it works
Pick a market, take a side. YES at 0.40 SOL means the market thinks there's a 40% chance the event resolves YES. Buy shares, the price rises. Sell shares, it falls. You can trade in and out at any time before the deadline.
At the deadline, the market locks. The auto-resolver pulls the outcome from its data source. Winning shares pay 1 SOL each. Losing shares pay 0. If you bought YES at 0.40 SOL and YES wins, each share returns 1 SOL — a 2.5× gain.
The two flywheels
ARENA runs on two closed loops. Loop A gives traders something to trade on; Loop B makes ARENA scarcer.
LOOP A — ARENA volume to market liquidity
pump.fun trades on ARENA accrue creator fees. Crons sweep fees into seed wallet. Seed cranker distributes to market escrows. Markets graduate and deepen as funding compounds.
LOOP B — Prediction trades to ARENA burn
Every prediction trade pays 5% fee. Protocol skim goes to treasury. When treasury crosses 0.5 SOL, buy/burn cranker swaps SOL to ARENA via Jupiter. Half burned, half to LP. Supply down, depth up.
For traders
FEE BREAKDOWN — 5% TOTAL
For seeders
Seeders provide liquidity to prediction markets in exchange for 1% of all trading fees. Anyone can seed any market in pending_seed or live state.
Risks
LMSR house risk: Lopsided markets can consume seeder principal. LP fee yield offsets this over time.
Smart contract risk: ARENA is v1. Share balances live in Redis with on-chain settlement.
Oracle risk: Markets resolve from Dune, kolscan, or Pyth. If data source is down, markets defer.
No formal audit: The codebase has not been formally audited. Use at your own risk.
