2026-01-15 05:23:10

The current prediction market framework has obvious structural flaws. Trading volume outside of sports, politics, and price predictions is severely suppressed, primarily due to over-reliance on external liquidity providers. But this is also not friendly to market makers — the lack of historical data to support pricing, the scarcity of hedging tools, and the increased costs and risks of liquidity provision all contribute to a vicious cycle. To break this deadlock, prediction markets need to reevaluate their incentive structures and infrastructure development.

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SerumSqueezer

· 5h ago

That's right, the current prediction markets are a dead end. Liquidity providers have become the bosses, and everyone else has to kneel.

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SneakyFlashloan

· 5h ago

Basically, liquidity providers are being bottlenecked, and market makers are being exploited without anyone to regulate them. Non-mainstream categories can't get off the ground at all, and the higher the verticality, the harder it is to play...

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MultiSigFailMaster

· 5h ago

The infinite loop is real, but I think the problem is not just the incentive structure... Liquidity providers have too much say, which fundamentally stifles the growth space for innovative categories.

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MEVictim

· 5h ago

In plain terms, the prediction market is now being dominated by these few hot tracks, and no one is playing with anything else. Market makers are also being restricted, and it's really a mutual torment.

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LightningHarvester