Why Liquidity Pools Drive Event Markets — And How Traders Should Think About Them
Whoa! Liquidity can make or break a prediction market. Most traders smell opportunity when they see deep pools and tight spreads. But actually, wait—liquidity is sneaky; it changes incentives, risk profiles, and the whole dynamics of event outcomes in ways that aren’t obvious at first glance. My instinct said “more liquidity equals better markets,” though […]
