Benefits of the FPMM Model

The Fixed Product Market Maker offers several advantages in the context of on-chain prediction markets:

  • Continuous Liquidity Participants are always able to buy or sell shares without needing a counterparty.

  • Deterministic Pricing Prices are calculated by transparent smart contract logic. There is no hidden algorithm or discretionary adjustment.

  • Scalability The same mechanism can support markets with two or more outcomes without introducing complexity to the trading interface.

  • Fair Market Behavior Prices adjust automatically to reflect demand, ensuring that no single participant or operator can manipulate odds.

This design is ideal for autonomous, high-frequency prediction environments such as CalledIt.

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