Prediction Market Lending Protocol

Make prediction market shares productive

Borrow and leverage using your positions as collateral - powered by zkTLS proofs. No intermediaries. No custody.

Close-up of a digital market chart on a trading screen
Borrow

Against your shares

Lend

Earn uncorrelated yield

Leverage

Up to 2× exposure

Market Opportunity

A fast-growing $15B+ market

Prediction markets have seen 130-fold growth since early 2024 - yet nearly all capital sitting in positions remains unproductive.

"Some estimate this growth as 130-fold - from less than $100 million per month in early 2024 to more than $13 billion by the end of last year"
- International Banker

Kalshi

$8.5B

Volume 30d

Polymarket

$3.5B

Volume 30d

OPINION

$3.1B

Volume 30d

Predict Fun

$300M

Volume 30d

* Data from Jan 2026 (Kalshidata and DefiLlama)

The Problem

Billions locked in idle positions

Position shares (ERC-1155) across prediction markets have no utility beyond their outcome bet. They can't be used as collateral, can't generate yield, and can't be leveraged.

$460M

unproductive TVL in prediction markets*

* Polymarket + OPINION only

Our Solution

Unlock the value of your positions

A decentralized, non-custodial lending protocol that lets you borrow against and leverage prediction market positions - with trustless price verification via zkTLS.

01

Hold shares

You hold prediction market position shares in your wallet

02

zkTLS proof

Generate a ZK proof of your shares' market price from the API

03

On-chain verification

The proof is verified on-chain during your transaction

04

Borrow USDC

Receive USDC against your verified position value instantly

No centralized intermediaries. No custody risk. Just cryptographic proofs.

Core Features

Three ways to put your shares to work

Whether you want liquidity, yield, or amplified exposure - ylop has you covered.

Borrow

Use your prediction market positions as collateral to borrow USDC. Repay anytime. Available for whitelisted markets with deep liquidity.

Up to 50% of position value

Lend

Supply USDC to earn yield from prediction market traders. Returns are uncorrelated with the broader crypto market conditions.

Yield from real demand

Leverage

Amplify your prediction market exposure without additional capital. Get leveraged positions filled efficiently in a single step.

Up to 2× exposure
How It Works

Purpose-built for event-based assets

Every component is designed for the unique challenges of prediction markets.

zkTLS Oracle

Prediction markets use off-chain order books. Our zkTLS oracle verifies market prices from API responses with cryptographic proofs - no centralized price feeds needed.

Atomic Leverage

Leverage is intent-based: users create requests with their maximum slippage, and solvers fulfill them atomically for a small fee or not at all.

Liquidation Threshold Decay

A time-based safety mechanism that linearly reduces the liquidation threshold as events approach resolution - ensuring the protocol exits positions before outcomes are decided.

Flexible Liquidations

Multiple liquidation routes ensure positions can be efficiently unwound in any market condition, maximizing recovery for the protocol.

Portfolio-Aware LTV

Collateral spread across uncorrelated market categories is rewarded with improved borrowing terms - encouraging diversification that reduces systemic risk.

Dynamic Interest Rates

Borrowing costs adjust based on pool utilization - driven by supply and demand. As liquidity becomes scarce, rates rise to incentivize deposits and repayments.

Security & Trust

Built for safety

Purpose-built risk management for the unique volatility of event-based assets.

Non-Custodial

You retain full control of your collateral at all times. The protocol never takes custody - only smart contracts govern the lending pools.

Temporal LT Decay

Positions automatically approach liquidation as events near resolution. The protocol safely exits all positions 24 hours before outcome - eliminating bad debt risk.

Market Whitelisting

Only markets with sufficient volume, liquidity, and depth are eligible - preventing manipulation and ensuring smooth liquidations with minimal slippage.

Redundant Verification

Multiple zkTLS providers ensure continuous price data availability. If one source experiences an outage, others maintain data integrity seamlessly.

FAQ

Frequently asked questions

ylop is a decentralized, non-custodial lending protocol purpose-built for prediction markets. It enables users to borrow USDC against their prediction market positions, lend to earn yield, and leverage their exposure - all powered by zkTLS proofs for trustless price verification.
Users generate a ZK proof confirming the current market price of their shares as reported by the prediction market API. This proof attests that the HTTPS response originated from the official API. The proof is verified on-chain during the user's transaction - an on-demand model that eliminates the need to continuously push price updates on-chain.
Markets are whitelisted via governance based on volume, liquidity, and order book depth. The protocol is designed to support any prediction market platform that uses standardized share tokens. Minimum thresholds are enforced to prevent market manipulation and ensure smooth liquidations.
The protocol uses multiple risk management mechanisms: Temporal LT Decay automatically reduces the liquidation threshold as events approach resolution, ensuring positions close before outcomes. Market whitelisting ensures only liquid markets are used. Flexible liquidation mechanisms ensure efficient position unwinding. And portfolio-aware LTV rewards collateral diversification across market categories.
There is no token at this time. We are focused on building the core protocol and delivering the best lending infrastructure for prediction markets.
Apply for early access below to be first in line when we launch. We'll notify you via email with early access details, updates on development progress, and opportunities to participate in the protocol's growth.

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