# Introduction Axiom is a dual-protocol system built on the **XRPL EVM Sidechain**, uniting decentralized finance and prediction markets into a single, self-reinforcing economy. It consists of two interoperable layers: * **Axiom Prime**, a DeFi staking and yield mechanism initially supporting XRP, with additional stablecoin vaults (USDC, USDT, RLUSD, or others) added by dev team during bootstrap or via governance approval post-bootstrap as liquidity becomes available. * **Axiom Theorem**, a decentralized system for event-based markets and truth resolution. Unlike token-driven governance systems, Axiom replaces governance tokens with **staked economic weight**. Those who contribute capital to Axiom Prime govern and secure Axiom Theorem, while earning sustainable yield from market activity. Yield flows from market commissions and penalties, while governance power arises naturally from the distribution of staked value. Axiom aligns incentives around a simple principle: *the same capital that earns yield must also protect truth.* *** Prediction markets have long promised accurate forecasting through the aggregation of collective intelligence. However, they’ve struggled to achieve decentralized trust and consistent liquidity. At the same time, DeFi protocols have successfully attracted capital, but often without intrinsic yield sources, relying on inflationary token emissions or external DeFi strategies. **Axiom** merges these domains by binding market integrity directly to capital. It transforms staked value into both a **yield engine** and a **governance foundation**. * **Axiom Prime** acts as the financial foundation, initially accepting XRP deposits (with stablecoin vaults added as liquidity emerges), distributing yield from prediction market activity, and measuring stake-based influence. * **Axiom Theorem** hosts event markets, where truth resolution depends on the economic consensus of Axiom Prime stakers. This design removes governance tokens, liquidity fragmentation, and oracle dependencies—creating a decentralized and sustainable system where **capital, governance, and information integrity** coexist. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.axiomprotocol.io/protocol-design/introduction.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.