Permissionless Model Explained
The Permissionless Model Explained
Instead of a single price curve bounded between $0–$1, each outcome in a market has its own bonding curve, an independent price path that reflects demand for that specific outcome.
Markets can support 2 to 32 outcomes, and each outcome’s curve is powered by a self-contained liquidity pool.
Mechanics:
When users buy shares in an outcome, their payment is added to that outcome’s shared pool.
Upon resolution:
Winners first receive their initial stake back, ensuring they never lose capital for being correct.
The funds from losing pools are distributed proportionally to all winning shareholders.
In short: liquidity is always available, upside is uncapped, and accuracy is rewarded.
Key Advantages
Always-On Liquidity
No market makers or orderbooks required. Users can enter or exit positions at any time via bonding curves, with prices adjusting automatically based on demand.
Early Advantage
The earlier a trader buys, the cheaper their entry price, meaning greater percentage returns if their outcome wins.
Uncapped Upside
Unlike traditional $1-capped systems, outcomes can appreciate far beyond initial limits, creating asymmetric upside for early believers.
Viral Incentives
Traders benefit from bringing more participants into the outcomes they support. The larger the losing pools, the higher their eventual payout.
Simple, Transparent Settlement
All funds remain locked in smart contracts until resolution. Winning outcomes reclaim initial stakes plus proportional winnings from all others. All logic is fully on-chain and verifiable.
Last updated