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CJ
@cjh
hey @spenser, just caught up with your blog post & beta - congrats on an interesting experiment! I'm curious... when the liquidity from the losing token is used to “buy up” the winning token, does it go in some reserve for redemptions? is a specific rate of redemption guaranteed for each user? or does it become smaller every time a redemption is executed? and how do you preserve prediction markets’ quality as an info source with 2 adjacent bonding curves vs a complete set summing to 1 before market resolution?
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spenser🪳
@spenser
Thank you CJ! 1. We pull the ETH from the losing side's bonding curve so the losing token basically becomes uncollateralized and worthless. Buying the token can be thought of as the market contract being just another market participant that's pumping up the winning token's price. No redemption rates or anything. Just good old bonding curve selling for winners
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