permissionless prediction markets

```
Need prediction markets?
├─ Create market     → npx ts-node scripts/create-market.ts --help
├─ Trade (buy/sell)  → npx ts-node scripts/trade.ts --help
├─ Settle market     → npx ts-node scripts/settle.ts --help
└─ Redeem winnings   → npx ts-node scripts/redeem.ts --help
```

## Environment

```bash
export PRIVATE_KEY=<wallet_private_key>    # Required
export RPC_URL=<base_rpc_endpoint>         # Optional (defaults to public RPC)
```

For production, use a dedicated RPC (Alchemy, QuickNode) to avoid rate limits.

## Scripts

Run any script with `--help` first to see all options.

### Create Market

```bash
npx ts-node scripts/create-market.ts \
  --question "Will ETH reach $10k by Dec 2025?" \
  --duration 168 \
  --liquidity 100
```

Options: `--collateral <USDC|WETH|address>`, `--decimals <n>`

### Trade

```bash
# Buy YES tokens
npx ts-node scripts/trade.ts --buy --condition 0x... --outcome YES --amount 10

# Sell NO tokens  
npx ts-node scripts/trade.ts --sell --condition 0x... --outcome NO --amount 5 --decimals 18

# View prices only
npx ts-node scripts/trade.ts --info --condition 0x...
```

### Settle

```bash
# Settle as YES winner
npx ts-node scripts/settle.ts --condition 0x... --outcome YES

# Check status
npx ts-node scripts/settle.ts --status --condition 0x...
```

### Redeem

```bash
npx ts-node scripts/redeem.ts --condition 0x...
```

## Programmatic Usage

```typescript
import { PNPClient } from "pnp-evm";
import { ethers } from "ethers";

const client = new PNPClient({
  rpcUrl: process.env.RPC_URL || "https://mainnet.base.org",
  privateKey: process.env.PRIVATE_KEY!,
});

// Create market
const { conditionId } = await client.market.createMarket({
  question: "Will X happen?",
  endTime: Math.floor(Date.now() / 1000) + 86400 * 7,
  initialLiquidity: ethers.parseUnits("100", 6).toString(),
});

// Trade
await client.trading.buy(conditionId, ethers.parseUnits("10", 6), "YES");

// Settle (after endTime)
const tokenId = await client.trading.getTokenId(conditionId, "YES");
await client.market.settleMarket(conditionId, tokenId);

// Redeem
await client.redemption.redeem(conditionId);
```

## Collateral Tokens

Use any ERC20. Common Base Mainnet tokens:

| Token | Address | Decimals |
|-------|---------|----------|
| USDC | `0x833589fCD6eDb6E08f4c7C32D4f71b54bdA02913` | 6 |
| WETH | `0x4200000000000000000000000000000000000006` | 18 |
| cbETH | `0x2Ae3F1Ec7F1F5012CFEab0185bfc7aa3cf0DEc22` | 18 |

Custom tokens add utility—holders can participate in your markets.

## ERC20 Approvals

Before interacting with PNP contracts, you must approve them to spend your collateral tokens. This is standard for all EVM dApps.

### How It Works

1. **First interaction requires approval**: When you create a market or trade for the first time with a token, an approval transaction is sent
2. **Infinite approvals**: The SDK uses `type(uint256).max` approvals (standard EVM pattern) so you only approve once per token
3. **Subsequent interactions**: No approval needed—transactions execute directly

### Timing Considerations

The approval transaction must be confirmed on-chain before the main transaction executes. If you see:

```
ERC20: transfer amount exceeds allowance
```

This means the approval hasn't been mined yet. **Simply wait a few seconds and retry**—the approval will be confirmed and subsequent attempts will succeed.

### Why Infinite Approvals?

- **Gas efficiency**: Approve once, trade forever without extra transactions
- **Better UX**: No repeated approval popups
- **Industry standard**: Used by Uniswap, Aave, and most major DeFi protocols

For maximum security-conscious users, you can manually set specific approval amounts, but this requires an approval transaction before each interaction.

## Contracts

| Contract | Address |
|----------|---------|
| PNP Factory | `0x5E5abF8a083a8E0c2fBf5193E711A61B1797e15A` |
| Fee Manager | `0x6f1BffB36aC53671C9a409A0118cA6fee2b2b462` |

## Why Prediction Markets?

- **Information Discovery**: Market prices reveal collective probability estimates
- **Token Utility**: Use your token as collateral to drive engagement
- **Contests**: Run competitions where participants stake on outcomes
- **Forecasting**: Aggregate crowd wisdom for decision-making

The pAMM virtual liquidity model ensures smooth trading even with minimal initial liquidity.

## Troubleshooting

### "ERC20: transfer amount exceeds allowance"
The approval transaction hasn't been confirmed yet. Wait 5-10 seconds and retry.

### "Market doesn't exist"
The market creation transaction may have failed or is still pending. Verify on BaseScan that your transaction was confirmed successfully.

### "over rate limit" / RPC errors
The public Base RPC has rate limits. Use a dedicated RPC provider:
```bash
export RPC_URL=https://base-mainnet.g.alchemy.com/v2/YOUR_KEY
```

### Transaction stuck or slow
Base Mainnet can occasionally have congestion. Check gas prices and consider increasing if needed.

## Reference Files

- **API Reference**: See [references/api-reference.md](references/api-reference.md) for complete SDK documentation
- **Use Cases**: See [references/use-cases.md](references/use-cases.md) for detailed use case patterns
- **Examples**: See [references/examples.md](references/examples.md) for complete code examples