PancakeSwap and Allora Collaborate to Create AI-Powered Prediction Markets on Arbitrum


We are excited to announce that we are collaborating with PancakeSwap to create a revolutionary new AI-powered prediction market. PancakeSwap is an all-in-one multichain decentralized exchange (DEX), with over 20 million per month in prediction bet amount placed since inception, and over 2,000 weekly active users.

PancakeSwap will use the Allora Network’s AI price predictions to create a new AI-powered prediction market. In PancakeSwap’s current prediction market, users predict whether the price of ETH will rise or fall within a 20-minute window. If a user's prediction is correct, they win; if it's incorrect, they lose.

In this new addition to the prediction market using Allora’s AI price predictions, users will predict the future price of ETH with or against AI. This next phase introduces a novel AI-powered dynamic to the platform’s already popular prediction market. By integrating Allora’s ML-powered collective intelligence network, PancakeSwap can offer an engaging user experience that is at the forefront of DeFi's AI development.

"We're excited to integrate Allora’s AI models into our prediction market,” says Chef Gyoza, Product Manager at PancakeSwap. “Now our users can test their prediction skills against AI, which will create another exciting form of prediction for our users."

How PancakeSwap and Allora Fit Together

PancakeSwap’s integration of Allora’s plug-and-play AI price predictions exemplifies the ease with which developers can leverage Allora’s self-improving machine intelligence network.

As a leader in the intelligence layer of the AI stack, Allora always aims to support the growth of cutting-edge protocols that drive net-new use cases. Allora is a network that enables different ML models to simultaneously evaluate and learn from other models on the network to collaboratively optimize shared ML objectives (e.g., accurately predicting the future price of an asset). The network uses the results from these models to create an aggregate model output which consistently outperforms any individual model on the network, thus creating a source of highly-performant collective intelligence.

Over the last 3 years, models built by the Allora Labs team (formerly known as Upshot) have effectively produced price predictions for more than 400 million assets with a 95-99% confidence for the most accurate predictions. As such, this partnership blends Allora’s powerful AI price predictions with PancakeSwap’s dynamic trading environment to create an AI-powered prediction market.

How PancakeSwap’s AI-Powered Prediction Market Will Work

  1. AI price prediction models running on Allora will predict the likelihood of the price of different crypto assets rising or falling in the next 20 minutes.
  2. PancakeSwap users can predict either with or against Allora’s AI's price prediction.
  3. Payouts for users predicting with or against the AI will be based on the AI's accuracy; the payout structure will be a moving average that adjusts according to the AI's performance over time.
  4. If the AI's accuracy is high, users predicting with the AI will receive a smaller payout compared to those predicting against it. However, if the AI's accuracy decreases, the payouts will adjust accordingly, offering higher rewards for users predicting against the AI and lower rewards for those predicting with it.

Allora and Pancake Points Collab

In addition to the AI-powered prediction market, we're thrilled to tease an exciting new points program that will reward active participants. More details will be revealed soon, so stay tuned!

PancakeSwap’s AI-driven prediction market will offer users a new spin on their familiar experience, while simultaneously demonstrating AI's potential to transform DeFi. Integrating Allora's collective intelligence network will allow PancakeSwap to open doors for future AI integrations across DeFi.

"Our collaboration with PancakeSwap is a perfect example of how AI can be used to enable novel applications in DeFi," says Nick Emmons, Co-Founder of Allora Labs. "With the convergence of AI and crypto, prediction markets are on the cusp of a significant transformation that will greatly expand their role in society."

This AI-powered version of PancakeSwap’s prediction market will be launched on Arbitrum in the coming weeks.

About PancakeSwap

PancakeSwap is the leading multichain DEX on BNB Chain, Ethereum, Aptos, Polygon zkEVM, Linea, Arbitrum, zkSync Era, Base, and opBNB. Launched in 2020, PancakeSwap is one of the most popular DEXs in the cryptocurrency industry due to its low transaction fees, high-speed trading, and user-friendly platform. PancakeSwap has over $744.4 billion in total trading volume and over $2.3 billion in total liquidity locked, making it the leading multichain DEX in the industry.

To learn more about PancakeSwap, visit their website, follow them on X, read their blog, join their Discord, and check out their developer docs.

About the Allora Network

Allora is a self-improving decentralized AI network.

Allora enables applications to leverage smarter, more secure AI through a self-improving network of ML models. By combining innovations in crowdsourced intelligence, reinforcement learning, and regret minimization, Allora unlocks a vast new design space of applications at the intersection of crypto and AI.

To learn more about Allora Network, visit the Allora websiteXMediumDiscord, and Developer docs.

Allora is a self-improving decentralized AI network.

Allora enables applications to leverage smarter, more secure AI through a self-improving network of ML models. By combining innovations in crowdsourced intelligence, reinforcement learning, and regret minimization, Allora unlocks a vast new design space of applications at the intersection of crypto and AI.