According to Foresight News, Paradigm has published an article introducing a new type of automated market maker (AMM) specifically designed for prediction markets: pm-AMM. The pm-AMM provides liquidity providers with a framework to adjust their liquidity over time based on expected fees and how they wish to allocate arbitrage risks. The pm-AMM may be useful for prediction markets driven by dynamic models similar to Gaussian score dynamics, and it may also be applicable to other types of assets such as bonds, options, and other derivatives.
According to Foresight News, Paradigm has published an article introducing a new type of automated market maker (AMM) specifically designed for prediction markets: pm-AMM. The pm-AMM provides liquidity providers with a framework to adjust their liquidity over time based on expected fees and how they wish to allocate arbitrage risks. The pm-AMM may be useful for prediction markets driven by dynamic models similar to Gaussian score dynamics, and it may also be applicable to other types of assets such as bonds, options, and other derivatives.