Outcome Token
Definition
Outcome Tokens are on-chain tokens representing Yes/No shares, redeemable for $1 if winning at resolution.
What Are Outcome Tokens?
On Polymarket and other blockchain prediction markets, your positions are represented by ERC-20 tokens:
- Yes Token: Represents a Yes share
- No Token: Represents a No share
- On-chain: Stored in your wallet
- Tradable: Can buy, sell, transfer
- Redeemable: Exchange for USDC after resolution
How They Work
Minting (Creating)
When you buy shares:
- Deposit USDC into contract
- Contract mints outcome tokens
- Tokens sent to your wallet
- Can trade or hold until resolution
Trading
Outcome tokens can be:
- Sold back to market
- Transferred to other wallets
- Held until resolution
- Redeemed for payout
Redemption (Settlement)
After market resolves:
- Winning tokens: Redeem for $1.00 USDC each
- Losing tokens: Worth $0.00, cannot redeem
- Invalid: All tokens redeemed equally (if invalid outcome)
Example
Market: "Will it rain tomorrow?"
Your Actions
- Buy 100 Yes tokens at $0.40 each = 40 USDC
- Tokens appear in your wallet
- Market resolves to Yes (it rained!)
- Redeem 100 Yes tokens for 100 USDC
- Profit: 100 - 40 = 60 USDC
If No won instead:
- Your Yes tokens = worthless
- Cannot redeem
- Loss: 40 USDC
Token Addresses
Each market has unique token contracts:
- Yes token: 0xabc...123
- No token: 0xdef...456
- View on: Polygon scanner
- Verify: Contract addresses match market
In Your Wallet
Viewing Tokens
- Open MetaMask
- See "Tokens" tab
- Each market shows separately
- Balance updates in real-time
Adding Tokens
Sometimes tokens don't auto-appear:
- Copy token address from Polymarket
- In MetaMask: Import Token
- Paste address
- Token now visible
Smart Contract Features
Standard ERC-20
Outcome tokens are standard tokens:
- Transferable: Send to any address
- Divisible: Can own fractions
- Composable: Use in other DeFi apps
- Transparent: All transfers on-chain
Special Features
- Mint on buy: Created when purchased
- Burn on redeem: Destroyed when redeemed
- Paired: Yes and No always in pairs
- Conditional: Pay based on outcome
Use Cases Beyond Trading
Collateral
- Some DeFi platforms accept outcome tokens
- Can use as collateral for loans
- Risk: value depends on resolution
Derivatives
- Create options on outcome tokens
- Build complex strategies
- Advanced users only
Transfer/Gift
- Send tokens to others
- Gift positions to friends
- Betting pools
Security
Verified Contracts
- Polymarket uses audited contracts
- Check contract verification on Polygonscan
- Don't interact with unknown tokens
Scam Tokens
- Fake outcome tokens exist
- Always verify addresses
- Get links from official Polymarket only