PM Kit

An experimental playground for fully on-chain prediction market resolutions.

Powered by GenLayer

About

PM Kit is a playground project exploring how GenLayer's Intelligent Contracts can enable trustless, fully on-chain prediction market resolutions. Instead of relying on centralized oracles, markets are resolved by GenLayer validators that:

• Fetch real-world data (crypto prices, stock prices, news)
• Process non-deterministic data
• Reach consensus across multiple AI-powered validators
• Bridge results back to Base via LayerZero

This demonstrates a new paradigm for prediction markets where resolution is transparent, verifiable, and requires no trust assumptions.

🏗️ Architecture

The system consists of three main components working in harmony:

1. Frontend: User interface for placing bets and viewing markets.
2. Base Contracts: Manages funds, betting logic, and payouts on the Base blockchain.
3. GenLayer Oracle: Intelligent contracts that fetch external data and push results back to Base.

graph TD
    User([User]) -->|Place Bet| Frontend
    Frontend -->|Tx| Base[Base Sepolia Contracts]

    subgraph "Resolution Flow"
        Base -->|Request| LZ[LayerZero Bridge]
        LZ -->|Relay| GL[GenLayer Oracle]
        GL -->|Fetch Data| Web(Real World Data)
        GL -->|Consensus Result| LZ
        LZ -->|Callback| Base
    end

    Base -->|Payout| User

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🚀 Getting Started

Follow these steps to set up the project locally.

Prerequisites

• Node.js (v18+)
• npm or pnpm
• A customized contracts/.env file with your PRIVATE_KEY.

Installation

1. Install Contracts Dependencies

   cd contracts
   npm install
   cp .env.example .env

2. Install Frontend Dependencies

   cd ../frontend
   npm install
   cp .env.example .env

3. Install Bridge Service Dependencies

   cd ../bridge/service
   npm install
   cp .env.example .env

💻 Usage

1. Deploy Contracts (Base Sepolia)

Note: Uses MockUSDL as the betting token. For production, deploy with any ERC-20 by passing its address to the factory constructor.

cd contracts

# 1. Deploy MockUSDL token
npx hardhat run scripts/deploy-usdl.ts --network baseSepolia
# Note the deployed address

# 2. Deploy BetFactory (pass token address)
MOCK_USDL_ADDRESS=0x... npx hardhat run scripts/deploy-factory.ts --network baseSepolia
# Note the deployed factory address

# 3. Configure factory with bridge receiver (after bridge setup)
FACTORY_ADDRESS=0x... BRIDGE_RECEIVER_ADDRESS=0x... npx hardhat run scripts/configure-factory.ts --network baseSepolia

2. Configure Bridge

Follow the GenLayer Studio Bridge Boilerplate guide to set up the relay service. You will need to deploy:

• BridgeSender on GenLayer
• BridgeReceiver on Base (linked to your BetFactory)

3. Run Frontend

cd frontend
npm run dev

Open http://localhost:3000 to view the application.

🧪 Testing

We provide comprehensive test scripts for different parts of the stack.

Component	Command	Description
E2E Flow	npm run test:e2e	Full flow: Create -> Bet -> Resolve -> Bridge
Oracle	npm run test:oracle	Deploy and test GenLayer oracle logic
Contracts	npx hardhat test	Unit tests for Solidity contracts

📄 License

Distributed under the MIT License. See LICENSE for more information.