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How TrendZap Works

TrendZap is built on simple mechanics that anyone can understand.

The Basics

1. Market Creation

Anyone can create a market by specifying:

  • Post URL - The social media post to track
  • Platform - X/Twitter, TikTok, Instagram, or YouTube
  • Metric - Likes, retweets, views, comments
  • Threshold - The number to bet against
  • End Time - When betting closes

2. Placing Bets

Once a market is active:

  • OVER - You believe the metric will exceed the threshold
  • UNDER - You believe the metric will stay below the threshold

Your bet goes into a pool with other bettors.

3. Market Resolution

When the end time arrives:

  1. Our oracle fetches the final metric value
  2. The outcome is determined (OVER or UNDER)
  3. Winners can claim their share of the pool

The Math

Pool Distribution

Total Pool = All OVER bets + All UNDER bets
Platform Fee = 2% of Total Pool
Winners Pool = Total Pool - Platform Fee
Your Payout = (Your Bet / Total Winning Bets) × Winners Pool

Example

SideTotal Bets
OVER1000 USDC
UNDER500 USDC

Total Pool: 1500 USDC
Platform Fee: 30 USDC (2%)
Winners Pool: 1470 USDC

If OVER wins and you bet 100 USDC on OVER:

Your Payout = (100 / 1000) × 1470 = 147 USDC
Your Profit = 147 - 100 = 47 USDC

Odds Calculation

The implied probability is based on the betting ratio:

OVER Probability = OVER Stakes / Total Stakes
UNDER Probability = UNDER Stakes / Total Stakes

Using our example:

  • OVER: 1000 / 1500 = 66.7%
  • UNDER: 500 / 1500 = 33.3%

The Oracle

Our oracle system ensures market integrity:

  1. Data Collection - Fetches metrics from official APIs
  2. Validation - Cross-references multiple sources
  3. Bot Detection - Filters artificial engagement
  4. Chainlink Integration - Delivers data on-chain

Timeline of a Market

CREATE → PENDING → ACTIVE → CLOSED → RESOLVED
│ │ │ │ │
│ │ │ │ └── Winners claim payouts
│ │ │ └── Betting stops, await oracle
│ │ └── Users place bets
│ └── Waiting for start time
└── Market created with parameters

Risk Controls

TrendZap has multiple safety mechanisms:

ControlDescription
Position LimitsMax bet size per user
Market LimitsMax total exposure per market
Bot DetectionFilter artificial metrics
Anomaly AlertsFlag suspicious activity

Next Steps