Your First Trade on Catnip
Welcome to catnip.exchange!
catnip provides simple, liquid prediction markets with ultra-low fees. It’s 100% non-custodial and decentralized, built on Augur and Balancer.
We’re starting with one market on whether Trump will win the 2020 U.S. presidential election.
If the market resolves as YES (Trump wins), each yTrump token will pay out one DAI, and each nTrump share will pay out nothing. If the market resolves as NO, each nTrump token will pay out one DAI, and yTrump will pay out nothing.
How can you buy yTrump or nTrump on catnip?
Let’s take a look...
This tutorial assumes you already have metamask or another web3 wallet with ETH and DAI. If you’re new to crypto, check out this guide instead.
1) Connect Wallet
On catnip.exchange, click the “CONNECT WALLET” button.
Once connected, you’ll see your DAI balance. You’ll need DAI to trade on catnip as well as a little ETH to cover gas fees.
2) Set your Wager
Select which outcome you’d like to buy, yTrump (YES) or nTrump (NO) and plug in how much DAI worth of shares you’d like to purchase.
You’ll see the price per share at the bottom. The more shares you buy, the higher the price per share will be.
This price also signals the implied odds. So if yTrump is trading at .4 that signals ~40% odds of him winning, while if nTrump is trading at .6, that signals 60% odds of him *not* winning.
3) Approve Spending
The first time you spend a new token on catnip, in this case DAI, you need to approve spending. Click “APPROVE.”
Metamask will open asking you to confirm the transaction (if it doesn’t open automatically, just click on the fox icon). Click “Confirm.”
Now wait for the transaction to get processed which typically takes anywhere from a few seconds to a couple minutes.
4) Swap
Once the approval goes through, click the “SWAP” button and then confirm the transaction in metamask, increasing the gas price if you prefer faster processing.
Once the tx is processed, you’ll see your holdings in the upper right of the UI. You can also click “show in wallet” to display them in metamask.
You can also track the prices of yTrump and nTrump on Coingecko.
Congrats on your first catnip trade!
Market Settlement
Once the market settles, holders of winning shares may redeem their winnings on catnip by clicking a “Redeem DAI” button to submit a transaction to claim DAI.
The market doesn’t settle until after January 22nd, but as soon as the outcome is known, traders will likely be able to sell presumptive winning shares for close to one DAI each either directly on catnip or on a market linked to from catnip. And once the market settles, traders will be able to settle winning shares 1:1 with DAI.
More questions?
For any questions or to join the catnip community, feel free to jump on our Discord.