Library/How to Offer Prediction Market Parlays Without Fragmenting Liquidity
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How to Offer Prediction Market Parlays Without Fragmenting Liquidity

Chicken·July 18, 2025·Twitter
a single covariance market enables all eight joint bets without splitting liquidity

Why It's Worth Reading

Proposes 'covariance markets' as a solution to offering joint probability bets (parlays) without fragmenting liquidity. Instead of creating separate markets for all AND/OR combinations, a single covariance market between two base markets enables all 8 joint combinations while maintaining concentrated liquidity.

Extensive technical background assumed

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