Rain
Rain, also known by its formal name Rain Option Protocol, is a decentralized prediction and options market protocol built on the Arbitrum blockchain. The platform is designed to be permissionless, allowing any user to create, fund, and trade on prediction markets for any verifiable event. It incorporates an AI-powered oracle for automated market resolution, a native token ($RAIN) with a buy-and-burn mechanism, and supports both public and private markets. [1] [2]
Overview
Rain operates as a decentralized prediction markets protocol on the Arbitrum network, with stated cross-chain support for Base, the BNB Network, and Ethereum. The project positions itself as the "Uniswap of prediction markets," emphasizing a permissionless framework where users can create and trade on custom markets without central oversight. [3] [2] The core vision, as stated by the project, is to build an "engine for collective intelligence - where users create the markets, liquidity flows freely, and truth is the currency." [4]
The protocol’s architecture allows for both public markets, open to all participants, and private markets, which are accessible by invitation only for specific groups or communities. This dual-market system is a key differentiator from competitors like Polymarket and Kalshi. [1] To ensure fair and automated outcomes, Rain integrates a decentralized AI oracle named Delphi. For disputes, the protocol employs a decentralized arbitration system involving both AI and human reviewers. Governance is managed by its community through a Decentralized Autonomous Organization (DAO), where holders of the native $RAIN token can vote on proposals affecting the protocol's future. [3]
The project's economic model is centered on the $RAIN token, which is integrated into a fee structure that includes a buyback-and-burn mechanism funded by a portion of the platform's trading volume. This design aims to create deflationary pressure on the token's supply. [2] The protocol gained significant media attention in late 2025 following a substantial financial commitment from a publicly traded company and for its role in the growth of Visa's crypto card transaction volume. [5]
History
Rain was founded in 2024, with its official X (formerly Twitter) account being created in December of that year. [1] [4] In early 2025, the protocol launched through the Gems Launchpad platform. Throughout its development, the team emphasized its choice of Arbitrum as its foundational layer, with a post stating,
"We chose Arbitrum as our home - not because it was trendy, but because its speed, scalability, and ecosystem aligned with the experience we wanted to deliver." [1]
The project's official LinkedIn page was launched in late August 2025, and the community hashtag #ArbitRain was introduced on social media. In late September 2025, Rain announced key partnerships for its launch, including Gems Launchpad for its multi-stage token sale, Hacken for security audits, and Olympus AI for its oracle technology. The Token Generation Event (TGE) for the 0.0003934 on September 9, 2025. [3]
The public beta version of the Rain protocol was launched in early November 2025. As part of its go-to-market strategy, the team created a 1M market... It’s a GTM experiment: can you 'advertise' by turning a market into the message?" [1]
On November 24, 2025, a major development occurred when Enlivex Therapeutics (Nasdaq: ENLV), a publicly traded biopharmaceutical company, announced a RAIN token. This marked the first time a public company had adopted such a strategy involving a prediction market asset. Following the announcement, the 0.008228 on the same day. [1] [3] On November 26, 2025, it was also reported that the "Rain Card," a Visa-powered crypto card offered by the protocol, was a significant contributor to the growth in Visa's overall crypto card transaction volume. [5]
Technology and Features
The Rain protocol is built on the Arbitrum blockchain to utilize its high throughput and low transaction costs. Its features are designed to create an open and accessible environment for prediction markets. [1]
Core Protocol Mechanics
The user flow on the Rain platform consists of four primary steps:
- Create Market: A user defines a prediction market by setting a question, its potential outcomes, and the resolution method. A minimum of $10 in initial liquidity is required to launch the market.
- Provide Liquidity: Other users can provide liquidity by backing one or more outcomes. In return, they earn a share of the trading fees generated by that market.
- Trade & Participate: Users buy and sell positions on the market's outcomes, with every transaction recorded on-chain.
- Earn Rewards: Market creators, liquidity providers, and resolvers receive a share of the fees generated from market activity. [2]
Market Types
Rain supports two distinct types of prediction markets to cater to different user needs.
- Public Markets: These markets are open for participation by any user on the platform. The creator can choose to resolve the market outcome themselves or delegate the task to the protocol's automated AI oracle, Delphi. [2]
- Private Markets: These are exclusive, invitation-only markets designed for specific communities or groups. The creator controls access via an access code and is solely responsible for verifying and resolving the market's outcome. The protocol's website claims it is the only prediction market platform to offer this feature. [2]
Market Resolution and Arbitration
Rain employs a multi-layered system for resolving market outcomes and handling disputes.
Delphi AI Oracle
For public markets, creators can opt for automated resolution by Delphi, a decentralized AI oracle powered by Olympus AI. Delphi uses a multi-agent system to ensure accuracy and decentralization. "Explorer Agents" are tasked with independently gathering information related to the market's question from various sources. An "Extractor Agent" then analyzes these findings. An outcome is only confirmed when a majority of the Explorer Agents reach a consensus, which is designed to prevent reliance on a single point of failure and enhance the reliability of the resolution. [2]
Dispute Resolution
If a market participant believes an outcome was resolved incorrectly, they can initiate a dispute within a 15-minute window following the official resolution. To prevent spam and frivolous challenges, the disputer must post collateral. The collateral amount is the lesser of 0.1% of the market's total trading volume or $1,000. Once a dispute is filed, the case is escalated to a decentralized system where a group of human oracles reviews the evidence and makes a final, binding decision. [2]
Rain Card
Rain offers a Visa-powered crypto card, the "Rain Card." This card enables users to spend their cryptocurrency holdings at merchants that accept Visa, bridging the gap between digital assets and real-world transactions. In November 2025, reports indicated that the Rain Card, alongside other crypto card providers, was a key driver of growth in Visa's crypto card transaction volume. [5]
Account Abstraction
The protocol integrates account abstraction to enhance the user experience. This technology simplifies interactions with the blockchain, potentially by bundling transactions or managing gas fees, making the platform more accessible to users who may be less familiar with the technical complexities of Web3 wallets. [3]
$RAIN Tokenomics
The $RAIN token is the native utility and governance asset of the Rain protocol, operating as an Arbitrum-based token. [1] It is integral to the platform's economic model and community governance.
Token Supply and Distribution
As of November 2025, the tokenomics for $RAIN were reported as follows:
- Maximum Supply: 1,150,000,000,000 (1.15 Trillion) $RAIN
- Total Supply: Approximately 1.15 Trillion $RAIN
- Circulating Supply: Approximately 237.6 Billion $RAIN
- Total Holders: 13,460
Data from this period suggests a market capitalization of approximately 1.64 million. The protocol utilizes smart contracts for token vesting, including a Claim Vesting Contract and a Sablier Vesting Contract, a known protocol for real-time token streaming. [5] [3]
Fee Model and Buyback-and-Burn
The protocol generates revenue by collecting a 5% fee on the trading volume of each market. For public markets that use the Delphi oracle for resolution, an additional flat fee of $1 is charged. [2]
The 5% trading fee is automatically distributed by the protocol's smart contracts to various ecosystem participants:
- 1.2% to the Market Creator.
- 1.2% to the Liquidity Providers (LPs) of the market.
- 0.1% to the Resolver (either the market creator or the Delphi oracle).
- 2.5% allocated for the $RAIN Token Buyback-and-Burn.
A key feature of the token's design is its deflationary mechanism. The 2.5% of trading volume allocated for this purpose is used to purchase RAIN over time, directly linking the token's scarcity to the protocol's overall usage and trading activity. [2] [3]
Utility and Governance
Holders of the $RAIN token are granted the ability to participate in the Rain DAO. Through the DAO, token holders can propose and vote on changes to the protocol, influencing its development and future direction. This gives the community control over the platform's governance. [3]
Ecosystem and Partnerships
Rain has established several key relationships across technology, finance, and security to support its ecosystem.
Enlivex Therapeutics
In a significant instance of institutional adoption, Enlivex Therapeutics (Nasdaq: ENLV), a Nasdaq-listed biopharmaceutical firm, announced a strategic move into digital assets in November 2025. The company raised RAIN token at its core. This partnership was a notable case of a traditional, publicly-traded company investing directly into a DeFi protocol's native asset. [1] [4]
Technology and Infrastructure Partners
- Arbitrum: Rain is built on the Arbitrum network, which serves as its foundational Layer 2 blockchain partner, providing scalability and low-cost transactions. [2]
- Olympus AI: This firm provides the technology for Rain's Delphi AI oracle, which is used for the automated resolution of public prediction markets. [1]
- Visa: Rain has an integration with Visa to power its "Rain Card," a crypto debit card that facilitates real-world spending of digital assets. [5]
- Hacken: The blockchain security firm conducted audits on the Rain protocol's smart contracts, including the $RAIN token contract, to ensure their security and integrity. [1]
- Gems Launchpad: This token launch platform facilitated Rain's multi-stage initial token sale. [1]
The $RAIN token is available for trading on both decentralized exchanges, such as Uniswap V3 on Arbitrum, and centralized exchanges, including MEXC, BitMart, and BingX. [3]