Developers of the Augur presented the second version of the protocol. At the moment, the code is completely ready for auditing.
The release contains major changes. The second version of the protocol makes DAI stablecoin the token for the trading on prediction markets, thereby solving the problem of ETH volatility.
At the same time, the developers added the ability to bet on an invalid outcome. If in the first version of the protocol, it was impossible to determine the winning variant, the shares were equally divided between the market participants, then in the second version, users will be able to initially bet on such an outcome.
Also, the price of REP token creation model was redesigned.
We have resolved the aforementioned bug in V2, and furthermore, we are making the platform fully decentralized by introducing a built-in double auction that will act as the price feed. Two double auctions will take place each week where a pot of DAI and REP are sold for one another, and a REP price is calculated from the sale prices. The platform will mint a small amount of REP weekly to compensate for any losses from the auction. This will introduce a small amount of inflation to REP in exchange for a decentralized price feed used to maintain platform security.
Probably one of the most important changes in the V2 concerns the forks of existing prediction markets. Now, in the case of a fork, users will have exactly 60 days to participate and migrate to the new “universes”, otherwise they will irrevocably lose their funds.
The developers also compressed the designated reporting window to a day since the vast majority of reporters that show up to report do so within 24 hours of market expiration.
Additionally, V2 adds support for the ERC-777 standard, which is backward compatible with ERC-20, which will allow developers to use the
tokensReceived backup function.
Augur is going to limit market's activity period. This will be made in order to keep REP holders safe in situation when protocols are being updated and holders's assets are frozen in one of the markets.