Prediction + LP Markets

Bet on ideas. Every call becomes an investable market

Lume turns every creator call into a permissionless prediction market (YES/NO) and launches a paired liquidity pool (LP market) on top of it. Traders bet on outcomes; market makers (LPs) deposit liquidity early, earn fees, and receive tradable LP tokens that appreciate as fees accrue.

Overview

  • Outcome Market (YES/NO): Trade probabilistic prices (0–1 USDC) for a clearly stated event with a fixed resolution time.

  • Liquidity Market (LP): A pool that powers trading in the outcome market; LPs earn a share of trading fees and hold LP tokens that reflect their claim on the pool.

  • Dual‑layer design: Outcome prices reflect sentiment; LP tokens reflect fee capture + inventory value. Both assets are tradable.

Lifecycle

  1. Create — Creator posts a call and spins up YES/NO market + LP pool with chosen params.

  2. Provide liquidity — LPs deposit USDC (and/or balanced YES/NO inventory) → receive LP tokens.

  3. Trade — Traders buy/sell YES/NO; the pool collects fees.

  4. Secondary market — LP tokens can be held, traded, or redeemed.

  5. Resolve — Outcome determined at timestamp via resolver policy.

  6. Payout — Winning side settles at 1.00; losing side at 0.00. LP assets are marked; LP token NAV updates accordingly.

  7. Exit — LPs redeem or trade out; market archives to history.

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