Overlay is a long/short trading protocol for DeFi data streams, providing users with virtually any tradeable scalar, including non-actionable and unpredictable data streams. It recreates the dynamics of trading, but without the need for counterparties, to solve the liquidity issues present in prediction markets, replacing them with an inflation problem.

Project Introduction

Overlay was founded by developer Michael Feldman. Overlay uses Chainlink as an oracle to create prediction markets where users can directly use the projects token OVL as a payment mechanism to short or long a data event. This user does not need to be a counterparty with other market participants, but instead synthesizes OVL tokens by betting on the trend direction of the data stream. At maturity, the smart contract will mint or burn a corresponding proportion of OVL tokens based on the ratio of the result data to the original data change.