Move from market creation rewards/stake & play concept to “liquidity providers”
This proposal describes how to implement auto market making for prediction markets
There was a ton of “staking” shitcoins, which real value came to zero. The real utility of staking was to lock the holder’s liquidity during the pump&dump cycle. In that case, staking by itself has no meaningful purpose.
Also, the PlotX prediction markets suffer from low liquidity while holders’ tokens used unproductively.
To solve this problem team should implement a “liquidity providing” option for holders. In that case holders liquidity will be split into all 3 options on the chosen market and the chance to win will depend on the algorithm, which tweaks price gaps. The holder can lose one market but it’s the PlotX team responsibility to tweak market conditions that holders profit was proportional to his provided liquidity in time and intensity at which the market was played during this time.
Possible bonuses for liquidity providers:
- save on gas costs due to auto market re-creation with their liquidity.
- the ability to use provided liquidity at any time to bet on one or two option instead of all three
- the ability to set “bullish” or “bearish” preset. in that case, liquidity will be used to bet on the top two or on the bottom two options accordingly.