Overlay: An Exchange for Unexplored Markets

Most exchanges perform a market-making function matching two active counterparties for each market: buyers and sellers. Overlay flips that traditional idea on its head by letting traders trade against data from an oracle. Through the use of token burn/mint functions, Overlay devised a mechanism to mint new tokens when a trader profits and burns deposited tokens when a trader loses. What’s beautiful about the idea is it only requires a simple data stream to make a market. That’s why Overlay has in its future plans to offer markets for regional weather patterns, athlete stats, and more. With new sources of data coming continuously online in the 21st century, the new DeFi primitive is well-positioned grow its future user base.

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