“prediction markets are turning binary bets into a new asset class for structured hedging”
Argues price prediction markets (short-term expiries like 'will BTC close above $100k?') represent a new asset class. Compares AMM vs CLOB mechanics, notes Limitless achieves 50-400bps spreads (better than onchain options at 1000+bps). Outlines how prediction markets enable synthetic covered calls, structured hedging, and volatility expression.
Some technical background helpful
Platforms mentioned: Polymarket, Limitless Exchange