Introducing Sapience
A smarter, more liquid era of prediction markets.
Summary
Sapience is a fully onchain prediction market protocol powered by USDe
Purpose-built to provide optimal market structure for prediction markets (PMs) and enable features like vaults and conditional bets
Sapience users have access to features like constructing arbitrary parlay wagers from active markets
Vaults can be used to coordinate capital and productize PM edge, enabling it to compose with other DeFi primitives and hyperscale PM liquidity
What is Sapience
Prediction markets sit at the intersection of information and finance. Sapience blends rich information networks with purpose-built onchain infrastructure to bootstrap the information <> liquidity flywheel, transforming collective intelligence into actionable signals that the entire DeFi ecosystem can build on.
Sapience is designed for depth and flexibility from top to bottom. Its request-for-quote (RFQ)-based liquidity model enables tight quoting for longer tail markets and bespoke parlays, which bundle conditional outcomes while simplifying composability with integrations like vaults for automated liquidity provisioning. By using reward-bearing USDe as collateral, the opportunity cost of providing liquidity or holding inventory on Sapience is minimized.
Sapience can also support a variety of market types from simple binary outcomes to numeric markets for continuous outcomes. The result is a prediction platform that’s not only more powerful, but fundamentally useful for traders, builders, and forecasters alike.
Sapience Protocol Design
RFQ: Built for Prediction Markets
Most prediction markets struggle with thin/fragmented order books. Sapience takes a different approach using an RFQ-based liquidity over traditional CLOBs (central limit order books). This enables deeper liquidity, fairer pricing, and more efficient market coverage.
Superior Economics for LPs
Order books spread capital thin across isolated markets, creating poor UX from extremely shallow depth on longer tail markets. Sapience’s RFQ system lets market makers quote across hundreds of outcomes without locking capital in advance. Liquidity moves where it’s needed, when it’s needed—making niche and bespoke markets just as tradable as popular ones.
Since liquidity providers don’t have to spread idle capital across inactive books, they can allocate on-demand, manage risk at the portfolio level, and avoid being picked off by opportunistic traders. The result? Tighter spreads, more efficient markets, and healthier incentives to quote broadly.
A Fairer Playing Field for Traders
For everyday traders, Sapience guarantees execution within quoted parameters and often delivers price improvement through competition between market makers. Fee structures also reward tight spreads and high availability, ensuring users always get competitive, reliable pricing.
Expanding What’s Possible
Because liquidity isn’t trapped in silos, Sapience can cover long tail markets ranging from things like local election turnout to sports prop bets. With conditional outcomes like parlays, traders can bundle outcomes into entirely new kinds of wagers.
Fully Onchain & Open Source
Every trade, resolution, and payout happens transparently onchain. And because the protocol is fully open source, the same markets can be extended, remixed, or integrated directly into other applications, AI agents, or information systems.
Scaling the Information → Liquidity Flywheel
By reducing liquidity fragmentation, supporting richer market types, and embedding composability through vaults and onchain infrastructure, Sapience makes prediction markets more efficient, more scalable, and more useful. With Sapience, information can flow seamlessly into the broader DeFi ecosystem, powering new strategies, products, and integrations.
The long-term vision is simple but ambitious: build the information → liquidity flywheel at scale, so that the insights of global forecasters don’t just live in isolated markets, but actively shape the next generation of finance.
From parlays to vaults to numeric forecasting, Sapience is expanding what prediction markets can do and who they’re useful for. This is the first step toward forecasting that’s not just open to everyone, but open for everything.
Be part of building the future of forecasting.