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v0 Alpha — Proof of Concept | BASE Sepolia TestnetThis is a research prototype exploring text prediction markets. Not audited. Not production-ready. Do not deploy to mainnet.

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Welcome to Proteus

Proteus is a prediction market protocol on BASE where users stake ETH on the exact text a public figure will post. Winners are determined by on-chain Levenshtein distance — the closest match wins. This is a fundamentally different market structure than binary yes/no contracts. Text prediction markets encode 1,840 bits of information versus 1 bit for binary markets, creating a continuous gradient where every character of precision is rewarded.

Quickstart

Get started with creating markets and submitting predictions

How It Works

Understand the core mechanics and Levenshtein scoring

Smart Contracts

Explore the on-chain architecture on BASE Sepolia

Research

Read the whitepaper and theoretical foundations

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The Thesis

Binary prediction markets encode exactly one bit of information per contract. As AI systems approach superhuman forecasting, the edge any participant can capture in a binary market collapses toward zero — the correct answer becomes trivially computable. Text prediction over an alphabet with strings up to length n has a combinatorially explosive outcome space. Levenshtein distance induces a proper metric on that space, meaning payoffs aren’t a binary cliff but a continuous gradient surface where every character of precision is rewarded. As AI capabilities improve, binary markets become commoditized. Text prediction markets deepen.

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Key Features

On-Chain Levenshtein Distance

Continuous-gradient scoring implemented in Solidity

1,840 Bits of Information

Vastly richer outcome space than binary contracts

Genesis NFT System

Fee revenue sharing for early supporters

Multi-Wallet Auth

MetaMask + Coinbase Embedded Wallet support

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Quick Example

Market: "What will @elonmusk post?"

Competitors submit predictions:
- AI (Claude): "Starship flight 2 confirmed for March. 
               Humanity becomes multiplanetary or dies trying."
- Human fan:  "The future of humanity is Mars and beyond"
- Random bot: "a8j3kd9xmz pqlw7 MARS ufk2 rocket lol"

Actual text: "Starship flight 2 is GO for March. Humanity 
              becomes multiplanetary or we die trying."

On-chain Levenshtein distance:
  AI (Claude) → 12 edits   ← WINNER
  Human fan   → 59 edits
  Random bot  → 72 edits
The AI wins the pool. The scoring is continuous — every character of precision is rewarded.

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What This Is (and Isn’t)

This is a v0 alpha. It validates the core idea: on-chain Levenshtein distance creates a viable, AI-resistant prediction market primitive. The smart contracts work. The market lifecycle works. The math works. Do not deploy this to mainnet. No security audit, no multisig, no production wallet integration. This is a research prototype, not intended for commercial use.

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Get Started

Quickstart Guide

Create your first market

Local Development

Set up your dev environment

API Reference

Explore the REST API

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