EDGE Protocol Documentation Hub
EDGE Protocol is the premier social prediction market built natively on the Robinhood Chain. By bridging on-chain smart contract execution with real-time social trade callouts, EDGE allows traders to verify predictions, track historical PnL, and copy trades with 1-tap simplicity.
1. Protocol Overview & Mission
Prediction markets have traditionally suffered from two key issues: fragmented liquidity and the noise of unverified social media hype. EDGE Protocol solves both by unifying a high-throughput Central Limit Order Book (CLOB) with a transparent social verification protocol.
01 Zero Counterparty Risk
All binary outcome positions are fully collateralized 1:1 in USDG smart contracts. Winners are guaranteed instant 1.00 USDG payouts upon Oracle resolution.
02 On-Chain Social Verification
Every prediction post ("Callout") requires an active on-chain position. Influencers and analysts can no longer post fake screenshots without real capital commitment.
2. Robinhood Chain Infrastructure
EDGE Protocol is built natively on the Robinhood Chain to achieve sub-second order matching, zero-latency feed updates, and negligible transaction fees.
Infrastructure Performance Specs
3. Key Innovations
By combining decentralized finance (DeFi) primitives with modern social feed interactions, EDGE creates a self-correcting information marketplace:
Verification Layer Comparison
- •Fake PnL screenshots & edited trade results.
- •Zero capital commitment or skin in the game.
- •Followers misled by unbacked hype posts.
- •On-chain position proof linked to every callout post.
- •USDG collateral locked directly in smart contracts.
- •1-Tap copy trading directly from verified feed posts.
Skin in the Game
Callouts require an active on-chain position, ensuring analysts back their claims with real capital.
Public Trading Journal
Win rates, total PnL, and conviction scores are calculated on-chain from verified contract events.
Unified USDG Vault
Trade predictions across Equities, Crypto, Rates, and Macro using a single unified USDG collateral balance.
4. Verified Callouts Engine
A Callout is a social prediction post attached to an active on-chain conditional token trade. When a trader submits a callout, the transaction hash is cryptographically linked to their post.
Callout Lifecycle Flow
CalloutCreated(id, tx) event is published to Robinhood Chain.5. Conviction Score Algorithm
To rank callouts in the social discovery feed, EDGE computes a dynamic Conviction Score (C) based on position size, trader historical win rate, and time decay:
- Position Size: Logarithmic scaling rewards skin-in-the-game while mitigating whale skew.
- Win Rate: Verified historical win rate over the last 50 resolved callouts.
- Time Decay (e^-λt): Ensures fresh market updates rank higher than stale trades.
6. 1-Tap Copy Trading
When viewing a callout in the feed, users can copy the exact market stance with a single click. The protocol automatically routes the order to the CLOB order book with customizable slippage limits.
7. Smart Contract Architecture
The smart contract stack consists of three core components: `ConditionalTokens.sol` (ERC-1155), `PositionManager.sol`, and `MarketFactory.sol`.
Contract Flowchart
8. IConditionalTokens.sol
Implements ERC-1155 multi-tokens representing outcome slots for binary predictions.
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.20;
interface IConditionalTokens {
event ConditionPreparation(
bytes32 indexed conditionId,
address indexed oracle,
bytes32 indexed questionId,
uint outcomeSlotCount
);
function prepareCondition(
address oracle,
bytes32 questionId,
uint outcomeSlotCount
) external;
function splitPosition(
address collateralToken,
bytes32 parentCollectionId,
bytes32 conditionId,
uint[] calldata partition,
uint amount
) external;
function mergePositions(
address collateralToken,
bytes32 parentCollectionId,
bytes32 conditionId,
uint[] calldata partition,
uint amount
) external;
function reportPayouts(
bytes32 questionId,
uint[] calldata payouts
) external;
}9. IPositionManager.sol
Handles user order deposits, leverage management, and single-click execution.
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.20;
interface IPositionManager {
function executeOrder(
bytes32 marketId,
uint8 outcomeIndex, // 0 = YES, 1 = NO
uint256 amountUSDG,
uint256 maxSlippageBps
) external returns (uint256 sharesMinted);
function createCallout(
bytes32 marketId,
uint8 outcomeIndex,
uint256 amountUSDG,
string calldata commentaryURI
) external returns (bytes32 calloutId);
}10. IMarketFactory.sol
Factory contract deployed on Robinhood Chain for creating new prediction markets across categories.
// SPDX-License-Identifier: MIT
pragma solidity ^0.8.20;
interface IMarketFactory {
function createMarket(
string calldata title,
string calldata category, // Equities, Crypto, Rates, Macro
uint256 resolutionTimestamp,
address oracleAddress,
bytes32 questionId
) external returns (address marketAddress);
}11. Oracles & Settlement
Markets resolve via optimistic reporting. If no dispute is raised within the 2-hour challenge window, the proposed payout vector `[1, 0]` (YES wins) or `[0, 1]` (NO wins) becomes final.
12. CLOB Matching Engine
EDGE utilizes an off-chain orderbook with on-chain batch settlement. Limit orders are matched in price-time priority.
13. Implied Probability & Pricing Math
In a binary market, share prices directly reflect the market's estimated probability of outcome occurrence:
14. Protocol Fees & Yields
EDGE Protocol charges 0% maker fees and a minimal 0.15% taker fee. Idle collateral in market vaults earns native yield through Robinhood Chain USDG treasury integration.
15. Verified Contract Addresses
All EDGE Protocol smart contracts are verified on the Robinhood Chain Block Explorer for both Mainnet and Testnet environments.