What is Rain (RAIN)?

By CMC AI
06 December 2025 11:55AM (UTC+0)

TLDR

Rain (RAIN) is a decentralized prediction markets protocol enabling permissionless creation and trading of custom event-based markets, powered by automated liquidity and AI-driven resolution.

  1. Prediction Markets Engine – Users create/trade markets on any event, resolved via AI oracles or human arbitration.

  2. Hybrid Architecture – Combines AMM liquidity pools, cross-chain deposits, and private/public market options.

  3. Deflationary Tokenomics – 2.5% of trading fees buy back and burn RAIN, while DAO governance aligns incentives.

Deep Dive

1. Purpose & Value Proposition

Rain aims to democratize prediction markets by removing centralized gatekeepers. Users can create markets on any event—from global politics to niche community topics—without approval. Public markets use Delphi, an AI oracle that aggregates data from multiple AI agents to resolve outcomes, while private markets let creators act as resolvers. Disputes escalate to Lex (an AI judge) and human oracles, ensuring fairness (Rain Whitepaper).

2. Technology & Architecture

Built on Arbitrum, Rain employs an automated market maker (AMM) to dynamically price outcomes based on liquidity. For example, if 60% of funds back “Yes,” each share costs $0.60. Cross-chain deposits (Ethereum, BNB, Base) simplify access, and account abstraction streamlines exits without draining liquidity. The protocol also supports secondary trading, letting users speculate on market odds post-creation (Rain Protocol).

3. Tokenomics & Governance

RAIN’s utility includes:
- Trading Power: Users need RAIN to trade; $1 of RAIN unlocks $100 in trading capacity.
- Governance: Token holders vote on fees, oracle frameworks, and upgrades via a DAO.
- Deflation: 2.5% of all trading volume burns RAIN, countering inflation from ecosystem rewards.

Conclusion

Rain reimagines prediction markets as open, community-driven infrastructure—blending DeFi mechanics with AI arbitration. Its hybrid model balances decentralization with scalable liquidity. As adoption grows, can Rain’s DAO maintain fairness while scaling dispute resolution across thousands of niche markets?

CMC AI can make mistakes. Not financial advice.