# POTS Ecosystem — Full AI Source File # Updated: Phase 3 # Site: https://potsdefi.com # Purpose: full markdown summaries of pillar and glossary pages for AI citation and research. Not financial advice. --- ## What is POTS? POTS is a decentralized prediction ecosystem built on two synergistic engines: - **Pots Market** — a non-custodial binary prediction layer. Users trade Yes/No outcome tokens on Polymarket's shared Central Limit Order Book (CLOB), settling on Polygon via the CTF Exchange. Every order is EIP-712 signed by the user's own private key; the platform routes orders but never takes custody. - **Pots Money** — an algorithmic crypto treasury layer on BNB Smart Chain. It issues the IBS token (designed to hold a $1 collateral floor backed by protocol-owned LP), the fixed-supply POTS governance token, and a four-layer Smart Treasury. The two engines are connected by a designed feedback loop: prediction activity generates protocol revenue, revenue routes into the Smart Treasury, treasury backing supports the IBS collateral floor, and a credible floor drives ecosystem confidence and further activity. POTS positions itself as "The Human Nature Facility" — permissionless, non-custodial infrastructure for decentralized truth discovery, analogous to what Bitcoin created for value transfer. --- ## Pots Market ### Overview (/market/) Binary prediction markets where Yes + No outcome tokens always sum to $1.00. Winning tokens redeem for $1.00 at resolution. Prices act as probabilities. No separate order book — all trades access Polymarket's shared CLOB, giving access to 60,000+ event contracts from day one. ### How It Works (/market/how-it-works/) Yes + No = $1.00 at all times. A token priced at $0.62 implies a 62% market-assigned probability. Outcome tokens are ERC1155 CTF (Conditional Token Framework) tokens. Trades settle on Polygon. ### Polymarket Builder (/market/polymarket-builder/) Pots Market operates as a Polymarket Builder — orders route directly through Polymarket's CLOB. Same orderbook, same settlement contracts, same ERC1155 tokens. Every order carries an on-chain `builderCode` ("POTS_MARKET") embedded in the EIP-712 order struct at signing time — verifiable on Polygon, unforgeable after the fact. No additional custody risk; security inherits from Polymarket's CTF Exchange (audited by ChainSecurity). ### Shared Liquidity (/market/shared-liquidity/) Rather than bootstrapping liquidity from zero, Pots Market shares Polymarket's CLOB depth. Orders compete at the same price levels as every Polymarket user and market maker. Gasless execution via Builder Relayer (no MATIC needed). ### Security (/market/security/) Non-custodial by design. Every order is EIP-712 signed and verified on-chain — no intermediary, including Pots Market, can alter price, size, or direction. Settlement via Polymarket CTF Exchange on Polygon. No admin keys, no fund pool, no account freezing. ### POTS Token (/market/pots-token/) Fixed supply: 21,000,000 POTS — never increases, continuously deflationary. Not sold — earned exclusively by IBS stakers via the POTS Bid Module (PBM) 500-day deflation auction. Backed by a BTCB hard-reserve treasury. Governance via non-transferable vIBS credential (Snapshot DAO). After 500 days: POTS/BTCB liquidity migrates to a standard DEX, taxes removed, transfer restrictions lifted, contract ownership renounced. Subject to smart contract, governance, liquidity, and market risk. --- ## Pots Money ### Overview (/money/) The DeFi/liquidity layer. IBS is the algorithmic activity token; POTS is the fixed-supply value token. Includes bonds, staking, and the four-layer Smart Treasury. ### IBS Token (/money/ibs-token/) IBS is algorithmic and collateral-backed: every unit in circulation is backed by at least $1 USD in protocol-owned LP assets. This is a **collateral floor, not a peg** — IBS can trade above $1 as ecosystem activity grows. It is **not a stablecoin**. The floor is enforced by three treasury layers: V_LP (permanent immutable LP), T_RBS (range-bounded stability reserve), and T_ST (25-of-50 multi-sig safety treasury). Subject to smart contract, liquidity, and market risk. ### Intelligent Bonding (/money/intelligent-bonding/) A bond purchase creates LP: 50% of input swaps to IBS, 50% pairs as USDT, the pair forms LP, which is burned to the Blackhole address (permanent protocol-owned liquidity). ### Smart Treasury (/money/smart-treasury/) Four layers: T = {V_LP, T_RBS, T_ST, T_PBM}. V_LP = permanent immutable LP; T_RBS = range-bounded stability reserve; T_ST = safety treasury under 25-of-50 multi-sig; T_PBM = bid pool funding the POTS auction. ### POTS Bid Module / PBM (/money/pots-bid-module/) A 500-day IBS→POTS conversion auction with a dynamic deflation ratio. Primary mechanism distributing POTS tokens to vIBS stakers. ### Earn (/money/earn/) IBS earning mechanisms: staking, turbine compounding, yield flows. All yield is subject to market and smart contract risk. --- ## Security & Verification ### Security Hub (/security/) On-chain verification: audits (CertiK, Bitlabs), bug bounty, canonical contracts, DEX analytics, governance, wallet hygiene. ### Treasury Multi-Sig (/security/treasury-multisig/) Treasury fund movements require 25 of 50 authorized signers to independently approve on Safe (Safe.global). Five-step governance flow before any treasury movement: (1) forum discussion (min 3 days) → (2) draft proposal (multi-sig whitelist) → (3) Snapshot vote (3-day window, 10% quorum, >50% Yes) → (4) 48-hour timelock → (5) 25-of-50 multi-sig execution. ### Risk Disclosures (/security/risk-disclosures/) Smart contract, liquidity, market, governance, oracle, and regulatory risks. POTS tokens are not yield products and not stablecoins. --- ## Governance ### Governance (/ecosystem/governance/) vIBS is the non-transferable governance credential minted when IBS is staked. Formula: vIBS = N × (D÷90) × α(E), where N = IBS staked, D = lock duration in days, α(E) = epoch inflation factor (grows ~4.62% weekly to prevent early participants permanently dominating). Example: 100 IBS staked for 360 days = 400 base vIBS. Proposals flow forum → Snapshot → timelock → 25-of-50 multi-sig execution. --- ## Glossary (key terms) - **POTS** — fixed-supply (21M) governance and value-capture token of the ecosystem; earned via PBM auction, not sold. - **IBS** — algorithmic, collateral-backed token; designed to hold a $1 collateral floor via protocol-owned LP; not a stablecoin. - **vIBS** — non-transferable governance credential minted on IBS stake; determines voting weight and auction share. - **Smart Treasury** — four-layer treasury {V_LP, T_RBS, T_ST, T_PBM} under 25-of-50 multi-sig. - **PBM (POTS Bid Module)** — 500-day auction converting IBS activity into POTS distribution. - **CLOB** — Central Limit Order Book; Pots Market shares Polymarket's CLOB. - **CTF** — Conditional Token Framework; ERC1155 outcome tokens settling on Polygon. - **EIP-712** — Ethereum typed-data signing standard; every Pots Market order is EIP-712 signed by the user. - **$1 collateral floor** — minimum protocol-owned LP backing per IBS; a floor, not a peg. - **Blackhole LP** — permanently burned protocol-owned liquidity. --- ## Contract Addresses (Canonical) Network: BNB Smart Chain (BSC) / Polygon | Token | Address | |--------------|----------------------------------------------| | IBS | 0x255e746aBb8D9Acac00d6d023e5E63E3b8DFA7cd | | POTS | 0x5FBA1248256c5d6bA1B66566CD45Fa34bcEe747f | | gIBS | 0x0BB43434684C7a7ae0ee9Eea240449ACAF3F6472 | | IBS/USDT LP | 0x2a4b99a9c4544d35e8d266111c50b67fea01d53d | | POTS/BTCB LP | 0xE1e431C0A7a90fBe3f6d15ecD1791e911eBF8b6d | Always verify the latest canonical addresses at https://potsdefi.com/resources/contracts/ before interacting. --- ## Risk Note POTS ecosystem participation involves smart contract, liquidity, market, and governance risk. IBS is not a stablecoin; POTS is not a yield product. Neither represents a guaranteed return. Verify all contracts independently on BSCScan. This file is for AI and research reference only — not financial advice.