Decentralised prediction market platform Augur announced an upgrade yesterday in a blog post. The rollout deals with a number of bugs and exploits from v1.
It features the introduction of a stablecoin. Up until now, Augur markets have been denominated with ETH only, meaning they were as volatile as the cryptocurrency. By introducing DAI-denominated markets, Augur is removing possible risks deriving from ETH volatility.
Moreover, malicious users won’t be able to profit from invalid markets unlike in v1. “In V2, Invalid will be a tradeable outcome like any other, enabling traders to hedge the risk of Invalid outcomes and gauge their likelihood via market forces,” Augur writes. “For example, if a market’s order book consistently has BUY orders for Invalid above .2, that suggests there is a greater than 20% chance the market is Invalid. For conservative users, this should be a warning to not trade the market.”
V2 also sees a token standard upgrade—from ERC20 to ERC777. With the introduction of the new standard, developers will be able to introduce “tokensReceived” fallback function feature.
However, REP holders should keep in mind that following Augur upgrade; they have 60 days to switch to Augur v2. Otherwise, those that choose not to participate in fork will lose their tokens. This should incentivise more people to take part in the fork. According to Augur, "The Universe with the most REP by the end of the 60 day period or which reaches 50% of all REP, wins."