The Financialization Revolution of Predict.fun: Prediction Markets Enter the Era of Earning Interest
The Financialization Turn of Prediction Markets
For more than a decade, decentralized prediction markets have remained in the awkward space where theoretical value far exceeds real performance. Augur proposed the ideal form of on-chain prediction. Polymarket entered the public eye under the acceleration of Layer 2. However, no matter how technology evolves, the core logic has always been constrained by a fundamental limitation. The funds after users place their bets are stationary. They cannot earn returns nor can they be used as collateral to participate in other financial activities.
Predict.fun attempts to overturn this structure. It does not treat prediction markets as a betting interface but rather as a financial asset that can generate interest. The collateral assets that users invest continue to generate returns while participating in predictions. Prediction positions can be further lent. Markets can be leveraged. These are capabilities that current mainstream prediction platforms cannot achieve.