Team Cliley - 5-Minute Prediction Market for Any Token on Cardano

lazer/cardano/prediction-market/README.md

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+# 5-Minute Prediction Market on Cardano
+
+A decentralized prediction market on Cardano that uses **Pyth Lazer** oracle for real-time price feeds. Users create markets on any Pyth-supported asset (BTC, ETH, ADA, etc.), place bets through a constant-product AMM, and settle based on verified on-chain prices.
+
+Includes a **market-maker bot** that continuously creates 1-minute markets and a **live frontend** with real-time Pyth price streaming and CIP-30 wallet integration for placing bets.
+
+## Team Cliley
+
+- **Clark Alesna** (Captain) — clark@saib.dev
+- **Riley Kilgore** — riley.kilgore@iohk.io
+
+## How Pyth Lazer Is Used
+
+The contract integrates Pyth Lazer via the **withdraw-0 pattern** — the standard approach for consuming Pyth price data on Cardano:
+
+1. **Market Creation** — The creator sets a target price and a Pyth feed ID (e.g., BTC/USD = 1). The Pyth deployment policy ID is stored in the on-chain datum.
+
+2. **Market Resolution** — After the window closes, the bot resolves the market:
+   - Fetches a signed price update from the Pyth Lazer REST API
+   - Includes the signed message as a withdrawal redeemer in the transaction
+   - On-chain, the validator calls `pyth.get_updates()` to extract the verified price
+   - Compares `oracle_price > target_price` to determine the winning side
+
+3. **Real-time Price Streaming** — The frontend uses `@pythnetwork/pyth-lazer-sdk` WebSocket streaming for live BTC price display (sub-second updates).
+
+4. **Key Pyth Integration Points:**
+   - `pyth-network/pyth-lazer-cardano` Aiken library (contract side)
+   - Pyth Lazer REST API — `POST /v1/latest_price` (resolve transactions)
+   - Pyth Lazer WebSocket — `wss://pyth-lazer-0.dourolabs.app/v1/stream` (live price feed)
+   - Pyth State UTxO on Preprod: policy `d799d287105dea9377cdf9ea8502a83d2b9eb2d2050a8aea800a21e6`
+
+## Architecture
+
+```
+contracts/               Aiken smart contracts (Plutus V3)
+├── lib/prediction_market/
+│   ├── types.ak             MarketDatum, redeemers, params
+│   └── market_validation.ak Bet, Resolve, Claim, Mint/Burn validation
+├── validators/
+│   ├── market.ak            Main validator (dual spend + mint)
+│   ├── pyth_test.ak         Pyth integration test validator
+│   └── tests/               Unit tests
+
+offchain/                TypeScript (Bun + blaze-cardano)
+├── lib/
+│   ├── cardano.ts           Blaze setup, datum helpers, tx submission
+│   ├── pyth.ts              Pyth HTTP API + WebSocket streaming
+│   ├── market.ts            Market operations (create, resolve, bet, claim)
+│   ├── bifrost.ts           CIP-30 wallet connector (Nami, Eternl, Lace)
+│   └── types.ts             Shared types
+├── cli.ts                   CLI for manual operations
+├── bot.ts                   Market-maker bot (1-min cycles)
+├── server.ts                Bun.serve() — API, WebSocket, frontend
+├── index.html               Frontend shell
+└── frontend.tsx             React app with live price + wallet + betting
+```
+
+## Contract Design
+
+**One validator, dual purpose** — parameterized with a one-shot UTxO for unique policy IDs per market:
+
+| Action | Description |
+|--------|-------------|
+| **Create** | Consume one-shot, mint state thread + YES/NO tokens, lock seed ADA |
+| **Bet** | Constant-product AMM: `tokens = reserve - k / (other_reserve + amount)` |
+| **Resolve** | Pyth Lazer price check, set `resolved=True` + `winning_side` |
+| **Claim** | Burn winning tokens, receive proportional ADA payout |
+
+## Verified on Preprod
+
+Full end-to-end flow tested on Cardano Preprod:
+
+| Step | Tx Hash |
+|------|---------|
+| Create (10 ADA seed, BTC/USD) | `9d840a1215456feea68708cab9088c84779b172f8106272d991e5fbdb78d05bd` |
+| Bet YES (2 ADA) | `3c5d2bf0627693b47922124761e311f5f1e07e401385cc35e4a615b7204f4153` |
+| Resolve (NO won via Pyth) | `88f97270e83503eba87f0bc6f677141100b06c5df216f73676937527e6bb131d` |
+| Claim (12 ADA payout) | `7d691f3c2f52f0a48bd5378c7090560597c0e09fdf235883d455e2c9e9e04de5` |
+
+## Quick Start
+
+### Prerequisites
+
+- [Aiken](https://aiken-lang.org/) v1.1+
+- [Bun](https://bun.sh/) v1.0+
+- Blockfrost API key (Preprod)
+- Pyth Lazer API key
+
+### Build Contracts
+
+```bash
+cd contracts
+aiken build
+aiken check  # run tests
+```
+
+### Run the Frontend + Bot
+
+```bash
+cd offchain
+cp .env.example .env   # fill in your keys
+bun install
+bun --hot server.ts    # starts bot + frontend at http://localhost:3000
+```
+
+The bot automatically creates 1-minute BTC/USD markets, resolves them via Pyth, and loops. The frontend shows real-time prices and lets users bet via their browser wallet.
+
+### CLI (Manual Operations)
+
+```bash
+bun cli.ts price BTC/USD
+bun cli.ts create BTC/USD 10
+bun cli.ts bet <policy> <oneshot_tx> <oneshot_idx> yes 2
+bun cli.ts resolve <policy> <oneshot_tx> <oneshot_idx>
+```
+
+## Supported Feeds
+
+Any Pyth Lazer feed ID works:
+
+| Feed | ID |
+|------|----|
+| BTC/USD | 1 |
+| ETH/USD | 2 |
+| ADA/USD | 16 |
+
+## License
+
+MIT

lazer/cardano/prediction-market/contracts/aiken.lock

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+# This file was generated by Aiken
+# You typically do not need to edit this file
+
+[[requirements]]
+name = "aiken-lang/stdlib"
+version = "v3.0.0"
+source = "github"
+
+[[requirements]]
+name = "pyth-network/pyth-lazer-cardano"
+version = "main"
+source = "github"
+
+[[packages]]
+name = "aiken-lang/stdlib"
+version = "v3.0.0"
+requirements = []
+source = "github"
+
+[[packages]]
+name = "pyth-network/pyth-lazer-cardano"
+version = "main"
+requirements = []
+source = "github"
+
+[etags]
+"pyth-network/pyth-lazer-cardano@main" = [{ secs_since_epoch = 1774200439, nanos_since_epoch = 656666028 }, "a46dacd97a22eb07feeaf966d48c3116c8249ddc836705656e3135cea285bcfc"]

lazer/cardano/prediction-market/contracts/aiken.toml

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+name = "saib/prediction-market"
+version = "0.0.0"
+compiler = "v1.1.21"
+plutus = "v3"
+license = "Apache-2.0"
+description = "Aiken contracts for project 'saib/prediction-market'"
+
+[repository]
+user = "saib"
+project = "prediction-market"
+platform = "github"
+
+[[dependencies]]
+name = "aiken-lang/stdlib"
+version = "v3.0.0"
+source = "github"
+
+[[dependencies]]
+name = "pyth-network/pyth-lazer-cardano"
+version = "main"
+source = "github"
+
+[config]