TLDR Crypto · INNOVATION & LAUNCHES

PM-AMM: A UNIFORM AMM FOR PREDICTION MARKETS

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Summary from the TLDR Crypto newsletter

The pm-AMM is a new type of automated market maker specifically optimized for prediction markets where traditional outcome tokens behave differently from other assets. By modeling these tokens with "Gaussian score dynamics," the pm-AMM aims to deliver consistent liquidity provider losses across prediction market scenarios with a dynamic variant that adapts as market expiration approaches.