Since Manifold uses play money, it costs them nothing to subsidize the market maker
IIRC, the market maker is subsidised by the market creator (M$50 of the cost of creating the market goes to the automated market maker)
amount of liquidity it provides increases as trading increases
I’m not sure, but I think this is not exactly true; if 50 people bet M$10 Yes at 50% and 50 people bet M$10 No at 50%, a new trade will move the market just like the first trade would, with the original M$50 in liquidity
IIRC, the market maker is subsidised by the market creator (M$50 of the cost of creating the market goes to the automated market maker)
I’m not sure, but I think this is not exactly true; if 50 people bet M$10 Yes at 50% and 50 people bet M$10 No at 50%, a new trade will move the market just like the first trade would, with the original M$50 in liquidity
But Manifold adds 20 mana to liquidity per new trader, so it’ll eventually become more inelastic over time. The liquidity doesn’t stay at 50 mana.
Oops! ok!