Augur: What is it and how can I use it?

What is Augur?

Augur is a fully decentralized and trustless oracle and prediction market protocol built on Ethereum.

Any user can create a market around the outcome of a future event. For example, a market might ask which of two candidates will win an upcoming election. Traders can buy shares that represent either of the two possible outcomes, and share prices fluctuate based on traders’ confidence in how the election will turn out. Once the election concludes, the market creator (or his/her designee) must report the outcome to Augur. Any person who disagrees with the reported outcome may dispute it. The Augur protocol defines a dispute process designed to ensure an ultimately correct result.

The prediction market protocol has a native ERC-20 token called REP. Market creators need to own REP. Also, holding REP allows you to participate in Augur’s dispute process and potentially earn a return by staking REP on the correct outcome. You don’t need to own REP to trade shares in a prediction market on Augur – for that, you just need ETH.

Why did the founders start Augur?

We asked co-founder Joey Krug about his inspiration for starting Augur: “I wanted to see cheaper global markets without intermediaries taking large fees on both sides and it’s a natural usecase for blockchain tech.”

Where are they going?

After a few years of development, the protocol launched on the Ethereum mainnet in July 2018. Some criticized the delayed launch, but most people recognize the complexity of Augur’s smart contracts and the care and attention that the team took to provide a secure and fully decentralized protocol.

Initial usage was lower than many hoped, owing in part to overall crypto market conditions and in part to the protocol’s novelty and complexity. But early 2019 has seen increased interest and excitement about the protocol. Third-party platforms built on Augur such as Veil Market are gaining traction, and there has been an uptick in the number of news articles and blog posts touting Augur’s potential.

How can I use it?

You can use Augur by downloading the app (or by using the web app) here. Or you can use the Augur protocol via Veil Market. If you’re interested in the REP token, you can buy it with Settle’s Swap Tool app or find the best price at Dex.Ag.

Even if you aren’t ready to use Augur, did you know that Settle offers the most advanced portfolio tracking tool in crypto… for free! If you haven’t experienced a professional portfolio management tool before, you should try it now.