A capital-efficient, chainable prediction market primitive built upon a novel concept.
We are at 1.26.32 :)
DIKE Protocol is a decentralized financial primitive that introduces Prediction Chaining — a mechanism where collateral from one prediction finances participation in another. Instead of locking capital into siloed, independent bets, a single initial deposit can recursively back an entire chain of conditional predictions.
Inspired by Paradigm's Multiverse Finance concept, DIKE transforms the theory into a working protocol and product.
✅ Built at ETHGlobal New Delhi 2025
✅ Chosen as a Winner + Stage Finalist from 1600+ participants and 610+ projects
Traditional prediction markets require separate collateral for each bet:
Prediction A (locked capital)
Prediction B (locked capital)
Prediction C (locked capital)
DIKE changes that:
Prediction A → collateral → borrow → Prediction B → collateral → borrow → Prediction C → ...
Each prediction creates borrowing power that can fund the next.
→ Increasing capital efficiency and potential ROI.
With DIKE, users can achieve up to 2.91× ROI vs. traditional markets — using the same initial capital.
- User opens a position on Prediction A by posting collateral.
- Based on the value of Position A, the user receives an undercollateralized loan.
- Loan funds Prediction B, which can fund Prediction C, and so on.
- The system manages:
- Collateralization ratios
- Chain health
- Liquidation triggers
- Final settlement
Each prediction exists in a conditional universe, dependent on the parent outcome.
| Component | Description |
|---|---|
| Collateralization ratio (CR) | Ensures solvency across chained predictions |
| Prediction Chain Health Score (H) | Measures whether the chain can sustain leveraged positions |
| Liquidation Rules | If a parent prediction loses, all dependent child positions auto-liquidate |
| Settlement Engine | Propagates PnL from leaf to root |
Our whitepaper defines the mathematical model supporting chain health, recursive payoff propagation, and capital constraints.
| Layer | Tools |
|---|---|
| Smart Contracts | Solidity (Foundry + Hardhat) |
| Frontend | Next.js, Wagmi, viem |
| Indexing / Subgraph | The Graph |
| Chain Deployment | (update based on your deployment) |
User deposits 1 ETH
↓
Creates Prediction A (Yes/No Market)
↓ (gains borrowing power)
Takes loan to enter Prediction B
↓
If A and B resolve in user’s favor → amplified ROI
If A fails → entire subtree liquidates
git clone https://github.com/srijan399/Dike.git
cd Dike
yarn installnpx hardhat compile
npx hardhat test
npx hardhat run scripts/deploy.js --network <network-name>cd frontend
yarn devPlease ⭐ the repo — it helps more people discover DIKE.
"We didn't just build an app. We created a new financial primitive."