Architecture & Technical Details

This page provides a detailed overview of the Depredict protocol's technical architecture and implementation.

Protocol Overview

Depredict is built on Solana using the Anchor framework, with three main components:

1. On-chain Program (programs/depredict/): Rust smart contracts
2. TypeScript SDK (sdk/): Client library for protocol interaction
3. Documentation (depredict-docs/): Guides and API reference

Smart Contract Architecture

Core Accounts

Config Account

• Purpose: Protocol-wide configuration and fee management
• Key Fields:
  • fee_amount: Protocol fee in basis points
  • authority: Admin authority for config updates
  • fee_vault: Address to receive protocol fees
  • next_market_id: Auto-incrementing market ID

Market State Account

• Purpose: Individual market data and state
• Key Fields:
  • market_id: Unique market identifier
  • question: Market question (max 80 characters)
  • market_start/end: Market timing
  • betting_start: When trading begins (for future markets)
  • oracle_type: Switchboard or manual resolution
  • market_type: Live or future market
  • yes_liquidity/no_liquidity: Current liquidity pools
  • next_position_id: Auto-incrementing position ID
  • mint: Token used for trading (defaults to USDC)

Position Account

• Purpose: User positions within a market
• Key Fields:
  • market_id: Associated market
  • authority: Position owner
  • positions: Array of individual positions
  • nonce: Account nonce for sub-accounts

Position NFT

• Purpose: Individual position representation
• Implementation: MPL Core NFT with metadata
• Key Fields:
  • position_id: Unique position identifier
  • direction: YES or NO position
  • amount: Position size
  • status: OPEN, WAITING, SETTLED, etc.

Market Types

Live Markets

• Start: Trading begins immediately when market is created
• Use Case: Real-time events, breaking news, etc.

Future Markets

• Start: Trading begins at a specified future time
• Use Case: Scheduled events, elections, etc.

Oracle Integration

Switchboard Oracle

• Usage: Automated, decentralized resolution
• Cost: ~$0.15 per resolution
• Setup: Requires oracle pubkey during market creation

Manual Resolution

• Usage: Admin-controlled resolution
• Cost: Gas fees only
• Process: Admin calls resolveMarket with outcome

Token Integration

Automatic Token Swapping

• Feature: Users can trade with any SPL token
• Process: Automatic conversion to market's base token
• Implementation: Jupiter aggregator integration

Fee Structure

• Protocol Fee: Configurable percentage of trade volume
• Oracle Fee: Per-resolution cost for Switchboard markets
• NFT Minting: ~0.002 SOL per position

Position Management

NFT-Powered Positions

• Technology: MPL Core for NFT minting
• Benefits:
  • True ownership and transferability
  • Secondary market trading
  • Composability with other protocols

Position Lifecycle

1. Creation: User opens position, NFT is minted
2. Trading: Position can be transferred or held
3. Resolution: Market outcome determines position value
4. Settlement: User claims payout by burning NFT

Sub-Position Accounts

• Purpose: Handle multiple positions per user per market
• Implementation: Hierarchical account structure
• Benefits: Efficient storage and gas optimization

Security Features

Access Control

• Config Authority: Controls protocol parameters
• Market Authority: Controls individual market settings
• Position Authority: Controls individual positions

Validation

• Market State: Prevents invalid state transitions
• Timing: Enforces market start/end times
• Liquidity: Ensures sufficient liquidity for trades

Error Handling

• Custom Errors: Specific error types for different scenarios
• Graceful Degradation: Markets can be paused or closed
• Recovery Mechanisms: Admin tools for emergency situations

Performance Considerations

Gas Optimization

• PDA Usage: Program-derived addresses for deterministic account creation
• Batch Operations: Multiple operations in single transaction
• Account Reuse: Efficient account structure design

Scalability

• Parallel Processing: Solana's concurrent transaction processing
• State Management: Efficient account state updates
• Memory Usage: Optimized data structures

Development Workflow

Local Development

# Build program
anchor build
 
# Run tests
anchor run test-runner-continue
 
# Deploy to localnet
anchor deploy

SDK Development

cd sdk
yarn install
yarn build

Documentation

cd depredict-docs
yarn install
yarn dev

Integration Points

External Protocols

• Jupiter: Token swapping and aggregation
• Switchboard: Oracle data feeds
• MPL Core: NFT minting and management

Developer Tools

• Anchor: Framework for Solana development
• TypeScript: SDK and tooling
• Vocs: Documentation site generation

This architecture provides a robust, scalable foundation for decentralized prediction markets while maintaining security, performance, and developer experience.