How DFlow is expanding prediction markets in DeFi on Solana
Solana gains access to prediction markets via DFlow’s infrastructure
Each month, we explore one founder’s journey of building on Solana, as well as noteworthy network updates to help you get up to speed.
The latest Solana Sessions podcast
This month on Solana Sessions, we sat down with Nitesh Nath, founder and CEO of DFlow, a trading infrastructure on Solana that supports both spot trading and prediction markets.
Nath explained why giving more people access to markets is important for users, how turning market predictions into tokens lets them be easily traded, and why Solana is the best place to do this. The discussion also delved into how the network, with improvements, can make for faster trading while simplifying liquidity provisions.
This interview is a part of the Solana Sessions campaign by Token Relations and the Talking Tokens, diving into founders’ journeys and startups building on Solana. Listen to this episode on Talking Tokens on Spotify, Apple Podcasts and YouTube.
Tokenization and prediction markets are expanding on Solana
Prediction markets have become a prominent new way for users to put their money where their beliefs are on real-world events, from elections and sports to niche local outcomes. As these markets gain traction, deeper integration with DeFi can enable new financial primitives by turning market outcomes into tokenized positions that plug into existing protocols.
At the end of November, DFlow added an API that brings regulated prediction markets to Solana, starting with a direct bridge to Kalshi. “There is a large user base of traders that are active on Solana, and they love being on Solana,” Nath said. “[But] they don’t have access to things like Kalshi, and so we are building a bridge that allows them to access markets.”
DFlow Prediction Markets API tokenizes Kalshi positions as tokens, known as Solana Program Library (SPLs). “Every prediction can be an SPL token,” Nath said. “SPL tokens are a standard that’s adopted on the Solana network, which means they can be plugged into existing infrastructure like borrowing and lending protocols.”
This tokenization allows positions to be traded, used as collateral or integrated into other DeFi apps. The system relies on DFlow’s Concurrent Liquidity Programs (CLPs), which connect offchain Kalshi liquidity to onchain users without degrading the experience. Users submit intents on Solana, and providers then fill them asynchronously, minting tokens for positions and burning them on settlement for stablecoin payouts.
This is a complex system, but Nath explained why he turned to Solana’s infrastructure as the place to build: “The thought process is generally that DeFi and Solana are more efficient financial rails. More markets should be on Solana and someone should build a trading infrastructure to make that possible.”
To date, the aggregated market size of all SPL tokens is roughly $417 billion, with on average 30,000 new tokens being minted every day. DFlow has so far processed $36 million in daily volume across 207,000 traders. Now, with access to Kalshi’s $13.34 million of daily volume, DFlow is looking to boost that number even higher.
In the long term, Nath sees prediction markets expanding beyond headline events into smaller markets, like local weather bets for hedging ski passes.
“Prediction markets are a new method for expressing opinions about what will happen in the world that hasn’t existed before,” Nath said. “It is very likely going to be a very large part of the future of finance.”
Check out the DFlow Prediction Markets API documentation here.
The biggest updates on Solana
Here’s what’s caught our eye this month:
Check out all the panels from Solana Breakpoint
Solana’s stablecoin market cap rose to an all-time high of $16.2B on Dec. 13
JP Morgan arranged Galaxy Digital’s U.S. Commercial Paper (USCP) issuance on Solana (bought by Coinbase and Franklin Templeton)
State Street and Galaxy Asset Management are launching the State Street Galaxy Onchain Liquidity Sweep Fund, a tokenized private liquidity fund for 24/7 onchain liquidity, on Solana
Solana DEXs dominated every day in December by volume, making up between 27% and 37% of onchain trading
Solflare launched Magic AI, an in-app assistant that lets users execute onchain trades using natural-language commands
Sanctum launched a Solana staking platform that lets users earn rewards in a gamified experience
Streamflow released USD+, a US Treasury-backed stablecoin on Solana that distributes yield automatically
TIX launched its RWA ticketing platform, which offers built-in royalties, resale control, fraud protection, and investor yield
Here are the winners of the Solana Cypherpunk Hackathon
Applications for Solana Incubator, a three-month program in NYC offering hands-on mentorship and workshops, close on Dec. 19
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.