Augur — the Ethereum-based prediction market platform — teased on Tuesday the launch of Version 2, which includes a token denominated in MakerDAO’s DAI stablecoin.

This marks the first major upgrade to the prediction protocol since it launched in July 2018. Announced in a blog post on April 8, Augur began working on Version 2 a few months ago, with contracts currently waiting on the first round of audits.

Until now, all prediction markets on the platform have been using ETH, which — like all cryptocurrencies — suffers from high volatility. The solution, then, is to look to a stablecoin, such as MakerDAO’s DAI, which currently sees almost $400 million worth of ETH locked in its platform. The blog post outlines the integration process:

“For V1, the usage of ETH was accomplished by using a contract (“Cash”) that wrapped ETH and was given additional trust by the Augur contracts to take privileged transfers. The V2 contracts will still reference “Cash,” which will instead point to an ERC20 Token with no extensions. At release time, this will be set to the Multi-Collateral DAI token.”

In addition to decreasing volatility and increasing accessibility, Version 2 of the platform also seeks to improve on a number of issues Augur currently faces. Most notable is the potential for bad actors to create intentionally invalid markets and make a profit. V2 introduces ‘Invalid’ as a tradeable outcome, allowing speculators to hedge the risk of a market closing as invalid, or less risk-seeking users to have a warning of sorts against trading that market.

Among other features, the Augur (REP) token will upgrade from the ERC-20 token standard to ERC-777, which improves upon many features of ERC-20. Specifically; the platform cites the ‘tokensReceived’ feature, which allows developers to integrate their applications with Augur without users needing to make an extra ‘approval’ transaction with each action.

Both Augur and MakerDAO made headlines recently when Coinbase announced the listing of the REP and MKR tokens on the Coinbase Pro exchange. At the time of writing, Augur (REP) is trading at a price of $20.88, or 0.116 ETH.



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