# Prediction Markets

If you are building an on-chain prediction market protocol and want to be Skywalk-ready, here's one key tip: offer the ability to **tokenize** your positions!

Skywalk works best for binary market designs.

### Token Issuance Options

| Issuance Strategy  | Works Best With     | Pros / Cons                                                                                                             |
| ------------------ | ------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Universal Issuance | Account Abstraction | Maximally composable. Protocol doesn't store balances. EVM approval flows can be mitigated with smart contract wallets. |
| On-Demand Issuance | Power Users         | Protocol can maintain a ledger of position balances. Requires manual activation by the user.                            |

And here's how to think about the type of token you'll issue:

| Token Type                                                      | Workflow                                                                                                        |
| --------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- |
| Any Receipt Token                                               | Tokens may be wrapped inside a Skywalk Prediction Token (SPT) if it is compatible with one of the SPT Standards |
| [Alternative Native Tokens](/skywalk-docs/specs/skywalk-ant.md) | Protocol controls ANT issuance. Highly liquid ANTs are upstreamed and wrapped inside an SPT                     |

### Redeemability Requirements

The position tokens your protocol issues should be instantly redeemable at resolution.

### Liquidity Bootstrapping Services

The Skywalk Liquidity Network can also help with liquidity bootstrapping for your protocol through the co-development of liquidity incentive programs. You should have the ability to provide strong financial incentives to maximize the success of these programs.

### Skywalk Registry Upstreaming

Your protocol retains full control over ANT issuance. In-demand prediction markets that may benefit from additional trading venue distribution will be wrapped into a SPT and included in the registry for syndication.


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