Futarchy market

In futarchy markets, participants trade on how a specific decision (e.g. a DAO proposal) will affect the price of two tokens. The market asks a single yes/no question (e.g. “Will proposal GIP-120 be accepted by February 1 2025?”). There are four outcome tokens: Yes/Token1, No/Token1, Yes/Token2, No/Token2. After resolution, either the two “Yes” outcomes or the two “No” outcomes are redeemable for the two collateral tokens. Creation uses FutarchyFactory.createProposal. Split, merge and redeem use FutarchyRouter, which is like the standard Router but works with two collateral tokens and a FutarchyProposal (proposal address) instead of a Market. Resolution uses FutarchyRealityProxy.resolve(proposal) (or proposal.resolve()).

Create a futarchy proposal

Call FutarchyFactory.createProposal with a CreateProposalParams struct. Outcomes and token names are derived from the two collateral token symbols (e.g. Yes-GNO, No-GNO, Yes-wstETH, No-wstETH).

struct CreateProposalParams {
    string marketName;
    IERC20 collateralToken1;
    IERC20 collateralToken2;
    string category;
    string lang;
    uint256 minBond;
    uint32 openingTime;
}

marketName: The Reality.eth question (e.g. “Will proposal X be accepted by date Y?”).
collateralToken1 / collateralToken2: The two ERC20 tokens used as collateral (e.g. GNO and wstETH).
category / lang: Reality question category and language.
minBond: Minimum bond for answering on Reality.eth.
openingTime: Unix timestamp when the question can be answered.

On success, the factory returns the new proposal contract address (you can also read it from the NewProposal event).

Split, merge and redeem

Use FutarchyRouter for all three. The argument order differs from the standard Router: the proposal (FutarchyProposal address) comes first, then the collateral token, then the amount.

Split

You choose one of the two collateral tokens and split that token into the two outcome tokens for that collateral (Yes-Token and No-Token). So one split gives you only the pair for token1 or the pair for token2. To get all four outcome tokens you split twice (once per collateral).

function splitPosition(FutarchyProposal proposal, IERC20 collateralToken, uint256 amount) public

Approve collateralToken (token1 or token2) to the FutarchyRouter.
Call futarchyRouter.splitPosition(proposal, collateralToken, amount).
You receive the two ERC20 outcome tokens for that collateral (e.g. Yes-GNO and No-GNO).

Merge

Hold one full set of outcome tokens for one collateral (i.e. equal amounts of Yes-Token and No-Token for that collateral). Merge returns that collateral to you.

function mergePositions(FutarchyProposal proposal, IERC20 collateralToken, uint256 amount) public

Approve both outcome tokens (for that collateral) to the router, then call mergePositions(proposal, collateralToken, amount). You receive collateralToken back.

Redeem (after resolution)

After the proposal is resolved (FutarchyRealityProxy has reported payouts), only the winning side (Yes or No) is redeemable. You can redeem per collateral or both in one call. Option A – Redeem one collateral

function redeemPositions(FutarchyProposal proposal, IERC20 collateralToken, uint256 amount) public

Approve the winning outcome token for one collateral (e.g. Yes-GNO if the proposal was accepted). Call redeemPositions(proposal, collateralToken, amount). You receive collateralToken. Option B – Redeem both collaterals in one tx

function redeemProposal(FutarchyProposal proposal, uint256 amount1, uint256 amount2) external

Approve the winning outcome tokens for both collaterals (e.g. Yes-GNO and Yes-wstETH). Call redeemProposal(proposal, amount1, amount2). You receive collateralToken1 and collateralToken2 (amount1 and amount2 of each).

Resolve a futarchy proposal

Same idea as Resolve a market: the question must be answered and finalized on Reality.eth. Then call either:

FutarchyRealityProxy.resolve(proposal), or
proposal.resolve() (the proposal forwards to the reality proxy).

After resolution, YES (outcome 0) or NO (outcome 1) is the winning side; only the corresponding outcome tokens are redeemable.

Viem examples

We use the Viem setup: getPublicClient(chain) and getWalletClient(chain, process.env.PRIVATE_KEY). Use @seer-pm/sdk for addresses: getFutarchyFactoryAddress(chainId), getRouterAddress({ id: proposalAddress, type: "Futarchy", chainId }). Futarchy contracts are deployed on Gnosis (chain 100).

Shared: addresses

import { getPublicClient, getWalletClient, ERC20_APPROVE_ABI } from "./viem-setup";
import { getFutarchyFactoryAddress, getRouterAddress, marketAbi } from "@seer-pm/sdk";
import { gnosis } from "viem/chains"; // or mainnet, base, etc.

const chain = gnosis;
const publicClient = getPublicClient(chain);
const walletClient = getWalletClient(chain, process.env.PRIVATE_KEY! as `0x${string}`);
const account = walletClient.account!;
const chainId = chain.id;
const futarchyFactoryAddress = getFutarchyFactoryAddress(chainId);
const futarchyRouterAddress = getRouterAddress({
  id: "0x0000000000000000000000000000000000000000",
  type: "Futarchy",
  chainId,
});

1. Create a futarchy proposal

Build the params tuple and call createProposal. The factory derives outcomes and token names from the collateral symbols.

import { parseEventLogs } from "viem/utils";

const GNO_ADDRESS = "0x...";   // collateral 1
const wstETH_ADDRESS = "0x..."; // collateral 2

const futarchyFactoryAbi = [
  {
    inputs: [
      {
        name: "params",
        type: "tuple",
        components: [
          { name: "marketName", type: "string" },
          { name: "collateralToken1", type: "address" },
          { name: "collateralToken2", type: "address" },
          { name: "category", type: "string" },
          { name: "lang", type: "string" },
          { name: "minBond", type: "uint256" },
          { name: "openingTime", type: "uint32" },
        ],
      },
    ],
    name: "createProposal",
    outputs: [{ name: "", type: "address" }],
    stateMutability: "nonpayable",
    type: "function",
  },
  {
    type: "event",
    name: "NewProposal",
    inputs: [
      { name: "proposal", type: "address", indexed: true },
      { name: "marketName", type: "string", indexed: false },
      { name: "conditionId", type: "bytes32", indexed: false },
      { name: "questionId", type: "bytes32", indexed: false },
    ],
  },
] as const;

const params = {
  marketName: "Will proposal GIP-120 be accepted by February 1 2025, 00:00 UTC?",
  collateralToken1: GNO_ADDRESS,
  collateralToken2: wstETH_ADDRESS,
  category: "misc",
  lang: "en_US",
  minBond: 1000000000000000000n, // 1e18
  openingTime: Math.floor(new Date("2025-02-01").getTime() / 1000),
};

const hash = await walletClient.writeContract({
  address: futarchyFactoryAddress,
  abi: futarchyFactoryAbi,
  functionName: "createProposal",
  args: [params],
});
const receipt = await publicClient.waitForTransactionReceipt({ hash });

const parsedLogs = parseEventLogs({
  abi: futarchyFactoryAbi,
  eventName: "NewProposal",
  logs: receipt.logs,
});
const proposalAddress = parsedLogs[0]?.args?.proposal;
if (!proposalAddress) throw new Error("NewProposal event not found in receipt");

2. Split (one collateral)

Choose one of the two collateral tokens, approve it, then call splitPosition(proposal, collateralToken, amount). Argument order: proposal first, then collateral, then amount.

const amount = 1000000000000000000n; // 1e18

await walletClient.writeContract({
  address: GNO_ADDRESS,
  abi: ERC20_APPROVE_ABI,
  functionName: "approve",
  args: [futarchyRouterAddress, amount],
});

const futarchyRouterAbi = [
  {
    inputs: [
      { name: "proposal", type: "address" },
      { name: "collateralToken", type: "address" },
      { name: "amount", type: "uint256" },
    ],
    name: "splitPosition",
    outputs: [],
    stateMutability: "nonpayable",
    type: "function",
  },
  {
    inputs: [
      { name: "proposal", type: "address" },
      { name: "collateralToken", type: "address" },
      { name: "amount", type: "uint256" },
    ],
    name: "mergePositions",
    outputs: [],
    stateMutability: "nonpayable",
    type: "function",
  },
  {
    inputs: [
      { name: "proposal", type: "address" },
      { name: "collateralToken", type: "address" },
      { name: "amount", type: "uint256" },
    ],
    name: "redeemPositions",
    outputs: [],
    stateMutability: "nonpayable",
    type: "function",
  },
  {
    inputs: [
      { name: "proposal", type: "address" },
      { name: "amount1", type: "uint256" },
      { name: "amount2", type: "uint256" },
    ],
    name: "redeemProposal",
    outputs: [],
    stateMutability: "nonpayable",
    type: "function",
  },
] as const;

const hash = await walletClient.writeContract({
  address: futarchyRouterAddress,
  abi: futarchyRouterAbi,
  functionName: "splitPosition",
  args: [proposalAddress, GNO_ADDRESS, amount],
});

To get outcome tokens for the second collateral as well, repeat with wstETH_ADDRESS (and approve wstETH to the router).

3. Merge (one collateral)

Hold equal amounts of Yes-Token and No-Token for one collateral. Approve both outcome tokens (Yes and No for that collateral) to the FutarchyRouter, then call mergePositions(proposal, collateralToken, amount).

// 1. Approve FutarchyRouter to spend `amount` of each outcome token. Get addresses via proposal.wrappedOutcome(0) and wrappedOutcome(1) (Yes/No).
const [yesToken] = await publicClient.readContract({
  address: proposalAddress,
  abi: marketAbi,
  functionName: "wrappedOutcome",
  args: [0n],
});
const [noToken] = await publicClient.readContract({
  address: proposalAddress,
  abi: marketAbi,
  functionName: "wrappedOutcome",
  args: [1n],
});
await walletClient.writeContract({
  address: yesToken,
  abi: ERC20_APPROVE_ABI,
  functionName: "approve",
  args: [futarchyRouterAddress, amount],
});
await walletClient.writeContract({
  address: noToken,
  abi: ERC20_APPROVE_ABI,
  functionName: "approve",
  args: [futarchyRouterAddress, amount],
});

// 2. Merge
const hash = await walletClient.writeContract({
  address: futarchyRouterAddress,
  abi: futarchyRouterAbi,
  functionName: "mergePositions",
  args: [proposalAddress, GNO_ADDRESS, amount],
});

4. Redeem – one collateral (`redeemPositions`)

After the proposal is resolved, approve the winning outcome token (e.g. Yes-GNO if accepted) to the FutarchyRouter. Then call redeemPositions(proposal, collateralToken, amount) to receive that collateral.

// Winning outcome token (e.g. Yes-GNO) – get from proposal.wrappedOutcome(0) or (1) depending on resolution
const winningOutcomeToken = "0x...";

await walletClient.writeContract({
  address: winningOutcomeToken,
  abi: ERC20_APPROVE_ABI,
  functionName: "approve",
  args: [futarchyRouterAddress, amount],
});

const hash = await walletClient.writeContract({
  address: futarchyRouterAddress,
  abi: futarchyRouterAbi,
  functionName: "redeemPositions",
  args: [proposalAddress, GNO_ADDRESS, amount],
});

5. Redeem – both collaterals (`redeemProposal`)

Approve the winning outcome tokens for both collaterals. Then call redeemProposal(proposal, amount1, amount2) to receive both collateral tokens in one tx.

const amount1 = 1000000000000000000n; // GNO to receive
const amount2 = 1000000000000000000n; // wstETH to receive

// Resolve outcome token addresses: wrappedOutcome(0)=Yes-token1, (1)=No-token1, (2)=Yes-token2, (3)=No-token2
const [yesGnoOutcomeAddress] = await publicClient.readContract({
  address: proposalAddress,
  abi: marketAbi,
  functionName: "wrappedOutcome",
  args: [0n],
});
const [yesWstEthOutcomeAddress] = await publicClient.readContract({
  address: proposalAddress,
  abi: marketAbi,
  functionName: "wrappedOutcome",
  args: [2n],
});

// Approve winning Yes outcome tokens for token1 and token2 (e.g. Yes-GNO and Yes-wstETH if proposal was accepted)
await walletClient.writeContract({
  address: yesGnoOutcomeAddress,
  abi: ERC20_APPROVE_ABI,
  functionName: "approve",
  args: [futarchyRouterAddress, amount1],
});
await walletClient.writeContract({
  address: yesWstEthOutcomeAddress,
  abi: ERC20_APPROVE_ABI,
  functionName: "approve",
  args: [futarchyRouterAddress, amount2],
});

const hash = await walletClient.writeContract({
  address: futarchyRouterAddress,
  abi: futarchyRouterAbi,
  functionName: "redeemProposal",
  args: [proposalAddress, amount1, amount2],
});

6. Resolve the proposal

Once the Reality.eth question is answered and finalized, call proposal.resolve() (or FutarchyRealityProxy.resolve(proposal)).

const proposalAbi = [
  {
    inputs: [],
    name: "resolve",
    outputs: [],
    stateMutability: "nonpayable",
    type: "function",
  },
] as const;

const hash = await walletClient.writeContract({
  address: proposalAddress,
  abi: proposalAbi,
  functionName: "resolve",
  args: [],
});

7. Simulate before sending

To avoid reverts (e.g. insufficient allowance or balance):

const { request } = await publicClient.simulateContract({
  account: account.address,
  address: futarchyRouterAddress,
  abi: futarchyRouterAbi,
  functionName: "splitPosition",
  args: [proposalAddress, GNO_ADDRESS, amount],
});
const hash = await walletClient.writeContract(request);

Summary

Action	Contract	Function	Notes
Create	FutarchyFactory	`createProposal(params)`	params: marketName, collateralToken1, collateralToken2, category, lang, minBond, openingTime
Split	FutarchyRouter	`splitPosition(proposal, collateralToken, amount)`	Approve collateral first; do once per collateral to get all four outcome tokens
Merge	FutarchyRouter	`mergePositions(proposal, collateralToken, amount)`	Need equal amounts of Yes + No for that collateral
Redeem (one collateral)	FutarchyRouter	`redeemPositions(proposal, collateralToken, amount)`	Approve winning outcome token; after resolve
Redeem (both)	FutarchyRouter	`redeemProposal(proposal, amount1, amount2)`	Approve both winning outcome tokens
Resolve	FutarchyProposal	`resolve()`	Or FutarchyRealityProxy.resolve(proposal); question must be settled on Reality

Argument order: FutarchyRouter uses (proposal, collateralToken, amount). The standard Router uses (collateralToken, market, amount). Don’t mix them up.

Getting started

Guides

HTTP API

Diagrams

Subgraph

Contracts

Futarchy market

Create a futarchy proposal

Split, merge and redeem

Split

Merge

Redeem (after resolution)

Resolve a futarchy proposal

Viem examples

Shared: addresses

1. Create a futarchy proposal

2. Split (one collateral)

3. Merge (one collateral)

4. Redeem – one collateral (`redeemPositions`)

5. Redeem – both collaterals (`redeemProposal`)

6. Resolve the proposal

7. Simulate before sending

Summary

​Create a futarchy proposal

​Split, merge and redeem

​Split

​Merge

​Redeem (after resolution)

​Resolve a futarchy proposal

​Viem examples

​Shared: addresses

​1. Create a futarchy proposal

​2. Split (one collateral)

​3. Merge (one collateral)

​4. Redeem – one collateral (redeemPositions)

​5. Redeem – both collaterals (redeemProposal)

​6. Resolve the proposal

​7. Simulate before sending

​Summary

Create a futarchy proposal

Split, merge and redeem

Split

Merge

Redeem (after resolution)

Resolve a futarchy proposal

Viem examples

Shared: addresses

1. Create a futarchy proposal

2. Split (one collateral)

3. Merge (one collateral)

4. Redeem – one collateral (`redeemPositions`)

5. Redeem – both collaterals (`redeemProposal`)

6. Resolve the proposal

7. Simulate before sending

Summary