🏏

Notes on mechanism designs

Paradigm The Cartoon Guide to Perps - ParadigmParadigm The Cartoon Guide to Perps - Paradigm

Perp swaps are exchange-specific contracts, where a long and a short can agree to swap interests at a specific price. If the underlying index diverges from the trading price (usually “mark price”), the system transfers money at a high interest rate.

  • Traders put down margin
  • Perps enable high eg 100x leverage

Q: How would this work for things that trade less often than BTC — eg private company valuations?

Q: How would this work for numbers that only go up, eg video view counts?

Could have a perp swap on growth rates?

Paradigm Opportunity MarketsParadigm Opportunity Markets

Opportunity markets are private markets where a “sponsor” provides liquidity for markets, eg “Will X speak at Manifest?”; but the prices are private. Traders submit bids, and eg after 2 weeks, the sponsor reveals and settles.

Q: What is the auction mechanism? Limit order that an AMM trades against?

What happens when someone bids $1000 at 10%, and another bids $1000 at 11% after?

Q: Why do the prices need to be private?

Oh: so that the sponsor gets first chance to use the info. So more useful in very competitive environments. (”Will event X happen at Mox or Lighthaven?”)

Paradigm Multiverse FinanceParadigm Multiverse Finance

You could have specific financial universes conditional on an outcome, like Trump!$ and Harris!$

Paradigm Quantum MarketsParadigm Quantum Markets — (unclear how this differs from multiverse, or conditional market tokens. seems kind of obvious? though makes a natural extension to AI agent traders)

Paradigm OrbitalParadigm Orbital

Orbital extends the liquidity concentration from Uniswap v3 to sets of more than 2 stablecoins

Paradigm pm-AMM: A Uniform AMM for Prediction Markets - ParadigmParadigm pm-AMM: A Uniform AMM for Prediction Markets - Paradigm

A design for an AMM for prediction markets. Complicated math.

Other thoughts:

  • Is there a generalized solidity/eth contract simulator? seems good for testing mechanisms
    • Also, having a visualization seems quite important
  • Manifold research prizes for things like, open source:
    • LLM-driven oracle
    • Accounts that hold balance
    • Comment ranking system
    • Agent-trading systems (cf Quantum Markets)
  • Metadao parameters for launching a project
  • image
  • “designing systems for agents”
    • once upon a time, the agents were humans (eg for Airbnb/Uber)
    • someday, will be llm-powered
      • why is claude code single-player?