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Algorithms

Math and mechanics behind market makers and pricing.

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Market Microstructure for Forecasters: Spreads, Latency and Signal Quality

How spreads, latency, order flow, fees and participant incentives shape the signal quality of prediction markets — and how forecasters can read a pric...

Understand the machinery that turns orders into prices.

Algorithmic market design shapes how prediction markets behave under uncertainty. These articles unpack scoring rules, automated market makers, liquidity curves, and the trade-offs behind pricing mechanisms.

Pricing and liquidity

Learn how market makers quote prices, absorb order flow, manage inventory, and keep markets tradable even before a large crowd of participants arrives.

Design trade-offs

Different algorithms optimize for different outcomes: lower slippage, stronger solvency guarantees, simpler UX, or better capital efficiency. This category compares those trade-offs directly.

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Market Microstructure for Forecasters: Spreads, Latency and Signal Quality

How spreads, latency, order flow, fees and participant incentives shape the signal quality of prediction markets — and how forecasters can read a pric...

Comparing AMM Liquidity Models: LMSR vs LSAMM vs CPMM vs Hybrid

A deep comparison of fixed, dynamic and hybrid liquidity models for prediction market AMMs — with trade-offs, subsidy math, and guidance on which to c...

LSAMM Algorithm Explained: The Logarithmic Scoring AMM Behind Modern Prediction Markets

A deep dive into the LSAMM algorithm — how it prices outcomes, scales liquidity with volume, and stays solvent under any market load. With math, code...