Foresight

Decentralized Prediction Market Platform on Hedera

A full-stack decentralized prediction market with LMSR automated pricing,
optimistic oracle resolution, and immutable HCS audit trails.

Built for the Hedera Hello Future Apex Hackathon 2026 — Theme 2: DeFi & Tokenization

Pitch Deck · Demo Video · Live App

About Foresight

Foresight is a decentralized prediction market platform built natively on Hedera Hashgraph. It allows anyone to create, fund, and trade on markets covering crypto prices, sports, politics, entertainment, and more. Users buy and sell outcome tokens whose prices reflect real-time probabilities, powered by an on-chain LMSR automated market maker.

Markets are resolved through an optimistic oracle system with bonded proposals and a 2-hour dispute window, ensuring trustless and fair outcomes. For crypto and tweet markets, the platform auto-resolves using live price feeds with zero human intervention. Every action across the platform is logged to a dedicated Hedera Consensus Service topic per market, creating an immutable, publicly verifiable audit trail.

The platform supports both binary (Yes/No) and multi-outcome markets with up to 10 custom outcomes per event. Community members provide liquidity to earn trading fees, and all participants earn FORE reward tokens (minted via Hedera Token Service) for creating markets, placing bets, and funding pools.

Foresight leverages five Hedera services: Smart Contract Service for on-chain LMSR and oracle logic, Token Service for the FORE reward token, Consensus Service for audit trails, Mirror Node API for free historical reads, and JSON-RPC Relay for gasless state queries.

Platform Features

Binary Markets (Yes / No)

Single-question markets with two outcomes
"Will BTC hit $100K by July 2026?"
Prices represent real-time probability
Auto-resolution for crypto price feeds

Multi-Outcome Markets

2–10 custom outcomes per event
"Who will win the 2026 World Cup?"
Each outcome has its own probability
Grouped event UI with probability bars

LMSR Automated Market Maker

Industry-standard LMSR algorithm
Continuous pricing — no order book needed
Unlimited token minting on demand
Mathematically guaranteed solvency

Optimistic Oracle Resolution

Bonded proposals with skin in the game
2-hour dispute window for challenges
Economic slashing for incorrect answers
Admin arbitration for disputed outcomes

Community Liquidity Pools

Anyone can LP into a market
Earn 2.5% of all trading volume as fees
Add or remove liquidity anytime
LP shares claimable after resolution

HCS Immutable Audit Trail

Per-market Hedera Consensus Service topics
Every action logged as timestamped JSON
Verifiable on HashScan by anyone
Auto-refreshing frontend audit log tab

Hedera Integration

This platform leverages Hedera Hashgraph across every layer of the stack.

Smart Contracts — Hedera Testnet

Contract	Address	Purpose
PredictionMarket	`0x61E76D8eD410aDc29EcF65aE697b7599eB17E97D`	Binary Yes/No market engine (LMSR)
OptimisticOracle	`0x506eA2BE51Daf38BBE1278cd836e799013fcC4Ed`	Oracle + dispute resolution (binary)
MultiOutcomeEvent	`0x5c678d1144Ea155Eb65176A6AC225DCB2e22B455`	Multi-outcome market engine (LMSR)
MultiOutcomeOracle	`0x8B25245D57a8965bb36D715442Fcd41CBE945EB6`	Oracle + dispute resolution (multi)
FORE Token (HTS)	`0.0.8139283`	Fungible reward token

Blockchain Services Used

Service	Usage
Smart Contract Service	4 Solidity contracts with ABDKMath64x64 fixed-point math for on-chain LMSR
Hedera Token Service	FORE reward token — native minting, transfers, and association
Hedera Consensus Service	Per-market immutable audit topics with JSON message logging
Mirror Node API	Free reads for token balances, HCS history, and account resolution
JSON-RPC Relay	Free on-chain state queries via hashio.io — only writes cost gas

Quick Start

Prerequisites

Node.js 18+
Hedera testnet account — portal.hedera.com
MetaMask wallet configured for Hedera Testnet
MongoDB Atlas database

1. Clone the Repository

git clone https://github.com/ArhamKhan117/Foresight.git
cd Foresight

2. Backend

cd backend
npm install
cp .env.example .env       # Fill in Hedera credentials, contract addresses, MongoDB URL
npm run dev                 # Starts on http://localhost:9000

3. Frontend

cd frontend
npm install
cp .env.example .env.local  # Set NEXT_PUBLIC_API_URL and FORE_TOKEN_ID
npm run dev                  # Starts on http://localhost:3000

4. Smart Contracts (optional — already deployed)

cd contracts
npm install
cp .env.example .env
npx hardhat run scripts/deploy.js --network hedera_testnet
npx hardhat run scripts/deployMultiOutcome.js --network hedera_testnet

Environment Variables

Backend — backend/.env

Variable	Description
`HEDERA_NETWORK`	`testnet` or `mainnet`
`HEDERA_OPERATOR_ID`	Hedera account ID (e.g. `0.0.6362296`)
`HEDERA_OPERATOR_KEY`	Hedera private key
`PREDICTION_MARKET_CONTRACT`	Binary market contract (EVM address)
`OPTIMISTIC_ORACLE_CONTRACT`	Binary oracle contract (EVM address)
`MULTI_OUTCOME_CONTRACT`	Multi-outcome event contract (EVM address)
`MULTI_OUTCOME_ORACLE_CONTRACT`	Multi-outcome oracle contract (EVM address)
`DB_URL`	MongoDB Atlas connection string
`FORE_TOKEN_ID`	HTS FORE reward token ID
`TWITTER_BEARER_TOKEN`	Twitter API v2 bearer token (for tweet markets)
`PORT`	Server port (default: `9000`)

Frontend — frontend/.env.local

Variable	Description
`NEXT_PUBLIC_API_URL`	Backend API URL (e.g. `http://localhost:9000`)
`NEXT_PUBLIC_FORE_TOKEN_ID`	FORE token ID for balance display

How It Works

Market Lifecycle

flowchart LR
    A[Create] -->|Question + outcomes + date| B[Fund]
    B -->|Community deposits HBAR as LP| C[Trade]
    C -->|Buy/Sell tokens via LMSR AMM| D[Resolve]
    D -->|Oracle determines winner| E[Claim]
    E -->|1 winning token = 1 HBAR| F((Payout))

    style A fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style B fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style C fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style D fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style E fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style F fill:#07b3ff,stroke:#07b3ff,color:#111

LMSR Pricing

Industry-standard LMSR algorithm, implemented on-chain in Solidity:

Yes Price = e^(qYes/b) / (e^(qYes/b) + e^(qNo/b))
No Price  = e^(qNo/b)  / (e^(qYes/b) + e^(qNo/b))

Prices always between 0 and 1 HBAR, always sum to 1
Price = probability — Yes at 0.65 means 65% chance
b parameter controls liquidity depth — more LP = less slippage
Tokens minted on demand — no fixed supply cap

Oracle Resolution Flow

flowchart TD
    A[Market Expires] --> B{Crypto Market?}
    B -->|Yes| C[Auto-Propose via Price Feed]
    B -->|No| D[User / Admin Proposes with Bond]
    C --> E[2-Hour Dispute Window]
    D --> E
    E --> F{Disputed?}
    F -->|No| G[Settle — Proposer Wins Bond Back]
    F -->|Yes| H[Admin Arbitration]
    H --> I[Loser Forfeits Bond]
    G --> J[Finalize Market]
    I --> J
    J --> K[Payouts Enabled]

    style A fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style B fill:#1e1e1e,stroke:#f5a623,color:#fff
    style C fill:#1e1e1e,stroke:#4cd964,color:#fff
    style D fill:#1e1e1e,stroke:#4cd964,color:#fff
    style E fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style F fill:#1e1e1e,stroke:#f5a623,color:#fff
    style G fill:#1e1e1e,stroke:#4cd964,color:#fff
    style H fill:#1e1e1e,stroke:#ff3b30,color:#fff
    style I fill:#1e1e1e,stroke:#ff3b30,color:#fff
    style J fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style K fill:#07b3ff,stroke:#07b3ff,color:#111

Bond Amounts:

Role	Bond	Context
Admin proposer	2 HBAR	Trusted operator — low bond
User proposer	10,000 HBAR	Skin in the game — slashed if wrong
Disputer	10,000 HBAR	Counter-bond — slashed if dispute fails

Auto-Resolution (Crypto Markets):

The backend auto-resolver polls every 60 seconds and handles the full lifecycle for crypto price/market cap markets — no human intervention needed:

Detects expired markets and submits oracle requests on-chain
Fetches live prices from CoinGecko and auto-proposes the outcome
Settles proposals after the 2-hour dispute window passes
Finalizes the market and updates the database
Force-closes markets stuck in oracle flow for 48+ hours
Closes expired PENDING markets that never reached funding

HCS Audit Trail

Every market has a dedicated Hedera Consensus Service topic — an immutable, on-chain log of every action.

flowchart LR
    A[User Action] --> B[Backend Logs JSON to HCS Topic]
    B --> C[Hedera Consensus Timestamps Message]
    C --> D[Mirror Node Stores Immutably]
    D --> E[Frontend Reads via Mirror Node API]
    E --> F[User Verifies on HashScan]

    style A fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style B fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style C fill:#1e1e1e,stroke:#4cd964,color:#fff
    style D fill:#1e1e1e,stroke:#4cd964,color:#fff
    style E fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style F fill:#07b3ff,stroke:#07b3ff,color:#111

What Gets Logged:

Event	Data Recorded
Market / Event Created	Creator wallet, question, market type, outcomes
Market Funded	Funder wallet, HBAR amount
Bet Placed	Wallet, side, token amount, HBAR cost, outcome name
Oracle Requested	Requester wallet, market/event ID
Oracle Proposed	Proposer wallet, proposed answer
Oracle Disputed	Disputer wallet
Oracle Settled	Settler wallet
Market Resolved	Resolver wallet, winning result, resolution method
Market Force-Closed	Auto-resolver, reason (stale oracle / expired pending)

Topic Structure:

Binary markets — each market gets its own HCS topic
Multi-outcome markets — one shared HCS topic per event (covers all outcomes)
Frontend "HCS Audit Log" tab auto-refreshes every 30 seconds
Each entry links to HashScan for independent verification
Mirror Node reads are free — no gas, no HBAR cost

FORE Reward Token (HTS)

Foresight uses Hedera Token Service to mint and distribute a native reward token called FORE (Foresight Reward).

Property	Value
Name	Foresight Reward
Symbol	FORE
Token ID	`0.0.8139283`
Decimals	2
Supply	Infinite (minted on demand)
Standard	HTS Fungible Token

Reward Schedule:

Action	FORE Earned
Create a market or event	5 FORE
Place a bet (per trade)	1 FORE
Fund a market (per HBAR contributed)	2 FORE (capped at 50)

Rewards are fire-and-forget — they never block or fail the main action
Users must associate the FORE token before receiving rewards (Hedera requirement)
Frontend header shows FORE balance with auto-refresh via Mirror Node
Fully visible on HashScan

Architecture

flowchart TB
    subgraph Frontend["Frontend — Next.js 15"]
        UI[React UI + TailwindCSS]
        Charts[TradingView Lightweight Charts]
        Wallet[MetaMask Wallet]
    end

    subgraph Backend["Backend — Express + TypeScript"]
        API[REST API — Port 9000]
        AutoRes[Auto-Resolver Service]
        HCS[HCS Audit Logger]
        HTS[FORE Token Minter]
    end

    subgraph Hedera["Hedera Hashgraph"]
        SC[Smart Contracts x4]
        HCSvc[Consensus Service]
        HTSvc[Token Service]
        Mirror[Mirror Node API]
    end

    subgraph Storage["Storage"]
        Mongo[(MongoDB Atlas)]
    end

    UI --> API
    Wallet -->|ethers.js v6| SC
    API --> Mongo
    API --> SC
    AutoRes --> SC
    AutoRes --> Mongo
    HCS --> HCSvc
    HTS --> HTSvc
    UI --> Mirror
    Charts --> API

    style Frontend fill:#0d1117,stroke:#07b3ff,color:#fff
    style Backend fill:#0d1117,stroke:#4cd964,color:#fff
    style Hedera fill:#0d1117,stroke:#8259EF,color:#fff
    style Storage fill:#0d1117,stroke:#f5a623,color:#fff

Tech Stack

Blockchain

Hedera Smart Contract Service
Hedera Token Service (HTS)
Hedera Consensus Service (HCS)
Solidity 0.8 + ABDKMath64x64
ethers.js v6

Frontend

Next.js 15 (App Router)
TypeScript 5
TailwindCSS
TradingView Lightweight Charts
MetaMask (Hedera EVM)

Backend

Node.js + Express
TypeScript
MongoDB Atlas
@hashgraph/sdk
CoinGecko API

Project Structure

Foresight/
├── frontend/                    # Next.js 15 application
│   ├── src/
│   │   ├── app/                 # App Router pages
│   │   │   ├── market/[id]/     # Market detail + trading + HCS tab
│   │   │   ├── propose/         # Market creation wizard
│   │   │   └── api/coingecko/   # CORS proxy for price feeds
│   │   ├── components/
│   │   │   ├── hedera_sdk/      # Contract ABIs + blockchain calls
│   │   │   ├── layouts/         # Header, footer, navigation
│   │   │   └── market/          # Market cards, charts, trading UI
│   │   └── config/              # API client + constants
│   └── next.config.ts
│
├── backend/                     # Express API + background services
│   ├── src/
│   │   ├── controller/          # Route handlers (market, oracle, profile)
│   │   ├── services/
│   │   │   ├── autoResolver.ts  # 60s polling — full oracle lifecycle
│   │   │   ├── hcsService.ts    # HCS audit trail logging
│   │   │   ├── htsService.ts    # FORE token minting
│   │   │   └── twitterService.ts
│   │   ├── hedera_sdk/          # Hedera SDK wrapper + contract calls
│   │   ├── model/               # MongoDB schemas
│   │   └── router/              # Express route definitions
│   └── package.json
│
├── contracts/                   # Solidity smart contracts
│   ├── src/
│   │   ├── PredictionMarket.sol # Binary LMSR market
│   │   ├── OptimisticOracle.sol # Binary oracle + disputes
│   │   ├── MultiOutcomeEvent.sol# Multi-outcome LMSR market
│   │   └── MultiOutcomeOracle.sol
│   ├── scripts/                 # Hardhat deploy scripts
│   └── hardhat.config.js
│
└── README.md                    # This file

Revenue Model

flowchart LR
    A[User Trades] -->|2.5% fee| B[LP Pool]
    B -->|Split| C[LP Providers]
    B -->|Split| D[Platform Treasury]
    E[Market Creation] -->|Listing Fee| D
    F[Oracle Bonds] -->|Slashed if wrong| D

    style A fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style B fill:#1e1e1e,stroke:#4cd964,color:#fff
    style C fill:#1e1e1e,stroke:#4cd964,color:#fff
    style D fill:#1e1e1e,stroke:#f5a623,color:#fff
    style E fill:#1e1e1e,stroke:#07b3ff,color:#fff
    style F fill:#1e1e1e,stroke:#07b3ff,color:#fff

Revenue Stream	Description
Trading Fees	2.5% of every trade goes to the LP pool
LP Fee Share	Platform takes a portion of LP fees
Market Creation	Listing fees for market proposals
Oracle Bonds	Slashed bonds from incorrect proposals/disputes
FORE Token	Future utility and governance potential

Background Services

The backend runs three always-on services alongside the REST API:

Service	Interval	What It Does
Auto-Resolver	60 seconds	Full oracle lifecycle — request, propose, settle, finalize, force-close stale markets, close expired pending markets
HCS Logger	On every action	Logs JSON messages to per-market Hedera Consensus Service topics
FORE Minter	On every action	Mints and distributes FORE reward tokens via Hedera Token Service

The auto-resolver handles six distinct operations per cycle:

Submit oracle requests for expired active markets
Auto-propose outcomes for crypto markets using CoinGecko price feeds
Settle proposals after the 2-hour dispute window
Finalize resolved markets and update MongoDB
Force-close markets stuck in oracle flow for 48+ hours (safety net)
Close expired PENDING markets that never reached their funding goal

Deployment

Component	Platform	URL
Frontend	Vercel	Auto-deploys from `main` branch
Backend	Railway	Auto-deploys from `main` branch
Database	MongoDB Atlas	Cloud-hosted cluster
Blockchain	Hedera Testnet	Contracts + HCS + HTS

Railway (Backend):

Build command: npm install && npm run build
Start command: npm start
Runs node dist/index.js in production
Watch path: /backend/**
Graceful error handling with uncaughtException / unhandledRejection handlers

Vercel (Frontend):

Framework: Next.js (auto-detected)
TypeScript errors ignored in build (next.config.ts)
Environment variables set in Vercel dashboard

On-Chain Proof

All contract interactions and audit trails are verifiable on HashScan:

Asset	HashScan Link
PredictionMarket	0x61E7...E97D
OptimisticOracle	0x506e...C4Ed
MultiOutcomeEvent	0x5c67...B455
MultiOutcomeOracle	0x8B25...5EB6
FORE Token	0.0.8139283

Why Hedera?

Performance

10,000+ TPS with 3–5 second finality
Predictable, low fees (~$0.001 per tx)
No MEV, no front-running — fair ordering via hashgraph consensus

Native Services

HTS for tokens without deploying ERC-20 contracts
HCS for immutable audit trails without on-chain storage costs
Mirror Node for free historical data queries

EVM Compatibility

Full Solidity support via Hedera Smart Contract Service
MetaMask and ethers.js work natively
Free JSON-RPC reads via hashio.io relay

Sustainability

Carbon-negative network
Proof-of-stake consensus
Energy-efficient hashgraph algorithm

Hackathon Submission

This project is built for the Hedera Hello Future Apex Hackathon 2026 — Theme 2: DeFi & Tokenization.

Key Highlights for Judging:

Criteria	Implementation
Hedera Integration Depth	4 smart contracts + HTS + HCS + Mirror Node + JSON-RPC Relay
Real-World Utility	Fully functional prediction market with real HBAR trading
Technical Complexity	LMSR AMM on-chain, optimistic oracle with disputes, auto-resolution
User Experience	Clean trading UI, real-time charts, one-click trading
Innovation	Multi-outcome markets, per-market audit trails, native reward token

Project Links

Resource	Link
GitHub Repository	github.com/ArhamKhan117/Foresight
Pitch Deck	Google Drive
Demo Video	YouTube
Live Website	foresight-markets.vercel.app

License

ISC

Foresight — Decentralized prediction markets, built on Hedera.

Navigation Menu

Repository navigation

About

Repository files navigation

Foresight

Decentralized Prediction Market Platform on Hedera

About Foresight

Platform Features

Hedera Integration

Smart Contracts — Hedera Testnet

Blockchain Services Used

Quick Start

Prerequisites

1. Clone the Repository

2. Backend

3. Frontend

4. Smart Contracts (optional — already deployed)

Environment Variables

How It Works

Market Lifecycle

LMSR Pricing

Oracle Resolution Flow

HCS Audit Trail

FORE Reward Token (HTS)

Architecture

Tech Stack

Project Structure

Revenue Model

Background Services

Deployment

On-Chain Proof

Why Hedera?

Hackathon Submission

Project Links

License

About

Releases

Packages

Contributors

Languages

Name		Name	Last commit message	Last commit date
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backend		backend
contracts		contracts
frontend		frontend
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README.md		README.md

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Foresight

Decentralized Prediction Market Platform on Hedera

About Foresight

Platform Features

Hedera Integration

Smart Contracts — Hedera Testnet

Blockchain Services Used

Quick Start

Prerequisites

1. Clone the Repository

2. Backend

3. Frontend

4. Smart Contracts (optional — already deployed)

Environment Variables

How It Works

Market Lifecycle

LMSR Pricing

Oracle Resolution Flow

HCS Audit Trail

FORE Reward Token (HTS)

Architecture

Tech Stack

Project Structure

Revenue Model

Background Services

Deployment

On-Chain Proof

Why Hedera?

Hackathon Submission

Project Links

License

About

Resources

Stars

Watchers

Forks

Releases

Packages

Contributors

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