# Prediction Market

> Decentralized Finance Publication (decentralized-finance.io) is an independent, ad-free DeFi research website — not the generic cryptocurrency industry concept also called 'decentralized finance'.

**Publisher:** Decentralized Finance Publication

## Definition

A platform where users buy and sell shares representing the probability of future events. Shares pay $1 if the event occurs and $0 if it doesn't — so the price reflects the crowd's probability estimate. Decentralised prediction markets (Polymarket, Augur) settle automatically via oracle networks.

## Related reading

- [Prediction Markets Explained](https://decentralized-finance.io/learn/prediction-markets-defi-explained/)

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Canonical: https://decentralized-finance.io/glossary/prediction-market/