Drift, the largest perpetual trading protocol on Solana, has launched a new prediction market platform named BET, focusing on election betting.

Announced on August 19, 2024, BET allows users to place bets on various events, including the upcoming U.S. presidential election, by purchasing YES or NO shares.

BET, which stands for 'Bullish on Everything,' differentiates itself by enabling users to collateralize bets with over 30 cryptocurrencies, including USDC and SOL, while earning yields on their assets.

To encourage trading activity, BET integrates a rewards system called FUEL, designed to enhance user engagement.

Built on Drift's decentralized exchange, BET utilizes a $500 million liquidity pool and offers features like cross-collateral trading and structured bets.

The platform includes 'structured bets' that allow users to hedge their predictions by taking long positions while shorting Bitcoin.

With nearly $374.1 million in total value locked, Drift is one of the largest perpetual trading protocols on Solana, expanding its offerings into various DeFi products.

Drift plans to broaden BET's scope beyond U.S. elections to include categories like sports and economics, incentivizing adoption through FUEL tokens.

As prediction markets gain traction, regulatory scrutiny is increasing, with concerns voiced by the CFTC and lawmakers regarding their impact on public interest.

In response to regulatory efforts, major crypto firms argue that proposed restrictions on prediction markets are economically unsound.

Prediction markets are increasingly popular in the crypto sector, especially during U.S. election seasons, as they harness the 'wisdom of the crowd.'

Drift is primarily known for perpetual trading, allowing users to speculate on future cryptocurrency prices without owning the assets.