Rain

Rain (RAIN) is a decentralized options and prediction-market protocol built on Arbitrum, an Ethereum Layer 2 network. It provides a permissionless framework in which anyone can create and trade custom markets — from options contracts to prediction markets on real-world outcomes — without needing approval from a central operator.

How Rain works

Markets on Rain come in two forms. Public markets are resolved by an oracle agent from Olympus AI, which determines outcomes automatically. Private markets allow the market creator to act as the resolver, enabling bespoke markets between known parties. The protocol also supports secondary trading of positions, so participants are not locked in until resolution, and uses account abstraction to smooth the user experience — reducing the wallet friction typical of on-chain trading.

The RAIN token sits at the center of the protocol's economics and governance. Rain employs a deflationary model in which 2.5% of trading volume is allocated to buying RAIN on the open market and burning it, permanently reducing supply as protocol usage grows. Token holders also govern the protocol through a decentralized autonomous organization (DAO), voting on changes and parameters.

RAIN has a maximum supply of 1.15 trillion tokens, of which roughly 717 billion are in circulation. The buy-and-burn mechanism means the effective supply can decline over time relative to that cap.

Within the broader DeFi landscape, Rain belongs to the growing category of on-chain derivatives and prediction-market platforms, sometimes grouped under "GambleFi." Its emphasis on unrestricted market creation distinguishes it from platforms that curate a fixed list of markets, though as with all speculative trading protocols, outcomes depend on market resolution mechanisms and participant activity.