FAFO × Uniswap v4
The FAFO protocol
A simple YES or NO on the surface. Backed claims, explicit market controls and funded inventory underneath.
Prediction contracts are specified. The separate token-pool integration is implemented with a custom hook to generate extra yield on idle capital.
One market. One native YES/NO pool. v4 magic.
The proposed prediction engine separates payout backing from market-making inventory.
Backed complete sets
Collateral creates one YES plus one NO claim, in a standard v4 pool on Uniswap. Winning claims redeem against locked backing; VOID markets pay half to each side.
A composed FAFO hook
A YES/NO v4 pool controls admission and market phases. The router handles the ordinary trade fee. Vaults and reserve controllers have separate ownership boundaries.
Explicit resolution
A disclosed resolver, a six-hour challenge window, a 2-of-3 review panel and hard timeouts. AI drafts proposed terms; it never decides payouts.
The liquidity thesis
Markets end.
Useful capital can carry forward.
Every question is unique. Actually collected group fees and separately funded reserves can support future markets. Hooks do not make unrelated outcomes interchangeable.
One clear fee. Shared incentives.
The ordinary buy/sell fee is 1% of gross collateral, with no second native outcome-pool fee. Creation, complete-set merging and final redemption have no market fee. Network and optional conversion costs are separate.
The main token pool earns in two ways
Basic DualPool mechanics belong in the first FAFO token-pool release.
1. Lending between swaps
Eligible stablecoin inventory rests in an asset-matching ERC-4626 lending vault (FAFO itself stays unvaulted).
2. Swap fees during execution
The unmodified DualPool hook deploys liquidity for a real v4 swap, collects the pool fee and removes the positions afterward.
3. Retained earnings
Fees remain in reserves and lending yield increases vault-share value. Treasury-owned LP shares retain the treasury’s portion.
Ownership before incentives
Know what backs your claim.
Creator protection applies to retained chosen claims held through settlement when the call is correct. A wrong call can lose the stake. Ordinary traders receive directional claims; they are not enrolled as LPs.
Prediction payout collateral, creator earnings and the separate token-pool inventory remain distinct. Public LP earnings belong to those LPs.