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Zeitgeist unveils new DLMSR-based market maker for prediction markets

Zeitgeist unveils new DLMSR-based market maker for prediction markets

Zeitgeist, a decentralized protocol focused on advancing prediction markets, is launching its new automated market maker (AMM) on Thursday, February 1, per the latest information shared with Finbold.

The new AMM utilizes a novel Dynamic Logarithmic Market Scoring Rule (DLMSR) and aims to significantly advance the blockchain prediction market space by introducing a new and dynamic liquidity model to the industry.

The benefits of the DLMSR model

The DLMSR model seeks to resolve several issues that impact profitability – especially of large trades – that are present when the Constant Product Market Maker (CPMM) model is used.

Price impact of DLMSR vs CPMM. Source: Zeitgeist

The new model will significantly reduce slippage, thus boosting trading efficiency and profitability, and is expected to be particularly impactful in heavily skewed markets.

Zeitgeist is also making its new automated market maker – hoped to revolutionize the world of decentralized forecasting – available on its website

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