Library/The Liquidity Problem in Prediction Markets: Part 0
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The Liquidity Problem in Prediction Markets: Part 0

semaji.eth·September 11, 2025·Twitter
prediction markets are a market maker's nightmare, not a goldmine

Why It's Worth Reading

Introduction to a series arguing prediction market mass adoption is threatened by structural barriers to market maker participation. Claims binary markets are frequently unhedgeable and suffer from adverse selection, making them a professional market maker's nightmare compared to options or crypto.

Extensive technical background assumed

Concepts

Platforms mentioned: Polymarket, Kalshi, Limitless Exchange

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