Unihedge -- A decentralized market prediction platform

Abstract: Unihedge is a decentralized platform for prediction markets with a novel approach. Using Harberger Tax (HTAX) economic policies a new type of prediction market, named HTAX prediction market, was build. HTAX prediction market derivates from Dynamic PariMutuel (DPM) type of prediction markets thus offering its users an unlimited liquidity for any preferred time horizon. It tries to solve some problems of DPM by introducing a new incentive mechanism to support early information incorporation and a protection against share readjustment for hedgers. In the paper also implementation of platform on Ethereum Virtual Machine (EVM) is presented with the usage of Decentralized Exchange (DEX) as an price discovery mechanism for prediction market resolutions.