CryptoParadise
LMSR FOR APES: WHY YOUR $100K BET WON'T WRECK THE ODDS
Picture this: Team A faces Team B. Market sits at 50-50 ($0.50 each side).
You decide to throw $100k on "Yes." In a basic orderbook? That bet rockets the price to 99% instantly. Game over.
LMSR laughs at that chaos.
This automated market maker runs on a logarithmic curve—not a straight line. Early moves are dirt cheap: pushing 50% to 60% barely dents your stack. But climbing from 80% to 90%? Now you're paying exponentially more for each percent.
Why it matters: Prediction markets stay liquid even when whales enter. No single trade can nuke
Picture this: Team A faces Team B. Market sits at 50-50 ($0.50 each side).
You decide to throw $100k on "Yes." In a basic orderbook? That bet rockets the price to 99% instantly. Game over.
LMSR laughs at that chaos.
This automated market maker runs on a logarithmic curve—not a straight line. Early moves are dirt cheap: pushing 50% to 60% barely dents your stack. But climbing from 80% to 90%? Now you're paying exponentially more for each percent.
Why it matters: Prediction markets stay liquid even when whales enter. No single trade can nuke