🏎️ Decentralized Permissionless F1 Prediction Market

Built as part of Solana Turbine Builder's Cohort

A decentralized prediction market platform for Formula 1 races built on Solana, featuring an automated market maker (AMM) with dynamic odds, liquidity provider fees, and a user-friendly Telegram bot interface.

Overview

F1 Prediction Market allows users to bet on F1 race outcomes using SOL. The platform uses a constant product AMM algorithm to automatically adjust odds based on bet distribution, ensuring fair pricing and deep liquidity. Liquidity providers earn fees from trading activity.

Key Features

Automated Market Maker: Dynamic odds that adjust based on betting activity
Liquidity Provision: Earn fees by providing initial market liquidity
Telegram Bot: Mobile-first betting interface with Privy embedded wallets
Self-Custodial: Users maintain full control of their funds
Real-time Odds: Live odds calculation based on pool ratios
Binary Markets: Simple YES/NO outcome prediction markets

Important Links

Program ID (Devnet): 72jWpfijYJqBf8L69Qw92o7tNKDBDKaiYUziDco7vMZL
Telegram Bot: @flew_f1_bot
Solana Explorer: View Program
Network: Solana Devnet
RPC: https://api.devnet.solana.com

Architecture Diagram

System Architecture

┌─────────────────────────────────────────────────────────────────┐
│                        F1 Prediction Market                     │
└─────────────────────────────────────────────────────────────────┘
                                  │
                ┌─────────────────┴─────────────────┐
                │                                   │
        ┌───────▼────────┐                  ┌──────▼──────┐
        │  Telegram Bot  │                  │  Web App    │
        │   Frontend     │                  │  (Future)   │
        └───────┬────────┘                  └──────┬──────┘
                │                                   │
                │    ┌─────────────────────┐       │
                └────►   Privy Wallet API  ◄───────┘
                     │  (MPC Signing)      │
                     └──────────┬──────────┘
                                │
                     ┌──────────▼───────────┐
                     │   Solana Blockchain  │
                     │                      │
                     │  ┌────────────────┐  │
                     │  │ Prediction     │  │
                     │  │ Market Program │  │
                     │  │ (Anchor)       │  │
                     │  └────────────────┘  │
                     │                      │
                     │  State Accounts:     │
                     │  • Global State      │
                     │  • Markets           │
                     │  • Positions         │
                     │  • LP Positions      │
                     │  • Market Vaults     │
                     └──────────────────────┘

Smart Contract Architecture

Component Breakdown

Solana Program (Anchor)

Written in Rust using Anchor framework v0.32.1
Manages market creation, betting, resolution, and payouts
Implements AMM algorithm with protocol fees (2.5%) and LP fees (2.5%)
Handles all on-chain state and fund custody

Telegram Bot

Node.js/TypeScript bot using Telegraf framework
Privy integration for embedded wallet management
11 streamlined commands for betting, market creation, and fund management
Real-time market data and position tracking

Privy Wallet Management

MPC (Multi-Party Computation) for secure key management
API-based transaction signing
Self-custodial wallets with enterprise-grade security
Seamless wallet creation for new users

AMM Algorithm

The platform uses a constant product AMM formula to calculate odds:

Price(YES) = yesPool / (yesPool + noPool)
Price(NO) = noPool / (yesPool + noPool)

Odds(YES) = (yesPool + noPool) / yesPool
Odds(NO) = (yesPool + noPool) / noPool

When a user bets:

Their bet amount (minus fees) goes into one pool
Odds automatically adjust based on new pool ratio
Potential payout calculated based on odds at entry

Fee Structure

Protocol Fee: 2.5% of each bet → Goes to protocol treasury
LP Fee: 2.5% of each bet → Goes to market creator (liquidity provider)
Total Fee: 5% per bet

Project Structure

capstone_prediction_market/
├── programs/
│   └── capstone_prediction_market/
│       └── src/
│           └── lib.rs              # Main Solana program (Anchor)
├── telegram-bot/
│   ├── src/
│   │   ├── index.ts               # Bot commands & handlers
│   │   ├── privy-wallet.ts        # Privy wallet integration
│   │   ├── solana.ts              # Blockchain interactions
│   │   └── utils.ts               # Formatting utilities
│   ├── package.json
│   └── README.md                  # Bot-specific documentation
├── tests/
│   └── capstone_prediction_market.ts  # Anchor tests
├── migrations/
│   └── deploy.ts                  # Deployment script
├── Anchor.toml                    # Anchor configuration
└── README.md                      # This file

Quick Start

Prerequisites

Node.js 18+ and npm/yarn
Rust 1.70+
Solana CLI 1.18+
Anchor CLI 0.32.1+

1. Clone the Repository

git clone <repository-url>
cd capstone_prediction_market

2. Install Dependencies

# Install Anchor dependencies
npm install

# Install bot dependencies
cd telegram-bot
npm install
cd ..

3. Build the Program

anchor build

4. Deploy to Devnet

# Configure Solana CLI for devnet
solana config set --url devnet

# Airdrop SOL for deployment
solana airdrop 2

# Deploy the program
anchor deploy

5. Initialize the Program

The program needs to be initialized once after deployment:

anchor run init-devnet

This creates the global state account and sets up the protocol treasury.

6. Setup Telegram Bot

See telegram-bot/README.md for detailed bot setup instructions.

Quick setup:

cd telegram-bot

# Copy environment template
cp .env.example .env

# Edit .env with your credentials:
# - BOT_TOKEN (from @BotFather)
# - PRIVY credentials (from dashboard.privy.io)
# - PROGRAM_ID (from deployment)

# Run the bot
npm run build
npm start

How to Use

Via Telegram Bot

Start: Message the bot and use /start to create your wallet
Create: Use /create to create new prediction markets
Fund: Use /deposit to get your wallet address and send devnet SOL
Browse: Use /markets to see active prediction markets
Bet: Click "Bet YES" or "Bet NO" buttons and select amount
Track: Use /positions to view your open positions
Claim: After market resolution, use /claim <market_id> to claim winnings

Bot Commands

/start - Create wallet and get started
/help - Show all commands
/wallet - View wallet address and balance
/deposit - Get deposit instructions
/withdraw - Send SOL to external wallet
/markets - View active prediction markets
/create - Create a new prediction market
/bet - Place a bet on a market
/positions - View your open positions
/claim - Claim your winnings
/resolve - Resolve a market (creator only)

Security Features

Non-custodial: Users control their funds via Privy wallets
MPC Security: Private keys split using multi-party computation
On-chain Settlement: All transactions verified on Solana blockchain
Time-locks: Markets can only be resolved after close time
Creator Authority: Only market creator can resolve outcomes
Claim-once: Positions can only be claimed once to prevent double-claims

Program Instructions

Initialize: Set up global state and protocol treasury
Create Market: Create new prediction market with initial liquidity
Place Bet: Bet on YES or NO outcome
Resolve Market: Resolve market outcome (creator only, after close time)
Claim Payout: Claim winnings from resolved market
Claim LP Fees: Claim accumulated LP fees (creator only)

Testing

Run the Anchor test suite:

anchor test

The tests cover:

Market creation with various parameters
Bet placement and odds calculation
Market resolution and payout claims
LP fee accumulation and claims
Edge cases and error conditions

Future Enhancements

Web app interface with React/Next.js
Multi-outcome markets (not just binary YES/NO)
Time-weighted LP fees
Automated market resolution via oracles
Mainnet deployment
Market discovery and search
Social features (leaderboards, sharing)
Advanced charting and analytics
Mobile app (iOS/Android)

Contributing

This project was built as part of the Solana Turbine Builder's Cohort. Contributions, issues, and feature requests are welcome!

Fork the repository
Create your feature branch (git checkout -b feature/amazing-feature)
Commit your changes (git commit -m 'Add amazing feature')
Push to the branch (git push origin feature/amazing-feature)
Open a Pull Request

License

This project is open source and available under the MIT License.

Acknowledgments

Solana Foundation for the Turbine Builder's Cohort
Anchor Framework for simplifying Solana development
Privy for secure wallet infrastructure
Telegraf for the Telegram bot framework

Contact & Support

GitHub Issues: For bug reports and feature requests
Telegram: @flew_f1_bot - Try the live bot!
Twitter: @dharminnagar - Follow for updates

Built with ❤️ by @dharminnagar | Powered by Solana ⚡

Part of Solana Turbine Builder's Cohort

Name		Name	Last commit message	Last commit date
Latest commit History 33 Commits
docs		docs
migrations		migrations
programs/capstone_prediction_market		programs/capstone_prediction_market
scripts		scripts
telegram-bot		telegram-bot
tests		tests
.gitignore		.gitignore
.prettierignore		.prettierignore
Anchor.toml		Anchor.toml
Cargo.lock		Cargo.lock
Cargo.toml		Cargo.toml
README.md		README.md
package-lock.json		package-lock.json
package.json		package.json
rust-toolchain.toml		rust-toolchain.toml
tsconfig.json		tsconfig.json
yarn.lock		yarn.lock

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