My latest obsession is using the Uniswap v3 liquidity injection mechanism to provide "limit orders" but better: https://uniswap.org/blog/uniswap-v3 Some Discord convo: @SG: My view is that USv3 is a much worse and far more complicated mechanism than limit orders. Getting users to understand liquidity provision is hard enough; getting them to understand liquidity provision that's only opportunistically provided within a given range will be even harder. @JamesGrugett: I also don't understand how it can approximate a limit order. The range order they talk about converts your liquidity in one token to another based on progress in your specified range. For us that would let you convert yes to no shares e.g. between range 20% to 50% if you think the probability should be less than 50%. So, to approximate a limit order of buying M$100 at 20%, you'd mint 100 yes and no shares with M$100, then have a range order to convert your no shares to yes shares in the interval [20%, 100%]. I don't think it's exactly the same thing, and it's way more complicated. @Austin: No actually, you'd probably convert them in the interval [20%, 25%], assuming that you're happy to sell at 25%. There's always a value you're happy to sell at, anyways, that's like a basic principle of economics. This lets you provide two pieces of information: your upper bound for buying, and your lower bound for selling, and that makes it such that the liquidity pool can be much deeper/more efficiently capital allocated, plus providers get paid out better for adding this useful information. It's just perfect all around. How to approximate a "limit buy at 20%" while the current prob is 15% would be to put in your M$100 in the range [20%, 20.01%], plus a rider that removes the liquidity once the market passes 20.01%. It seems kind of silly, sure, but the important point is that it provides a single unified mechanism for liquidity injection of EVERY kind. (The way it might be silly to set up a "prediction market" for a 2-party bet, but actually the prediction market is the generalized form; so too are range orders the generalized form of limit orders) And then the other reason is that you get the ability to draw arbitrary numeric market lines once we have Uv3 implemented. Aka by using 2-category CPMM for numeric (MAX/MIN instead of YES/NO, users can put down their own custom buckets with a range order, instead of needing buckets pre-specified beforehand by the creator. And if we want, we can let them still bet on a normal distribution, by setting the buckets accordingly May 25, 1:35pm: Discord convo was here: https://discord.com/channels/915138780216823849/927671564177133618/979098373955125338
Oct 4, 10:01pm: Resolved by admin (i.e. @SG) due to inactivity.
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