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

Concepts

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