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Fun fact, AMMs were considered well before cryptocurrency. " The most popular automated market maker used in Internet prediction markets is Hanson’s logarithmi
by ianmiers 4y ago
Fun fact, AMMs were considered well before cryptocurrency.
" The most popular automated market maker used in Internet prediction markets is
Hanson’s logarithmic market scoring rule (LMSR), an automated market maker with
particularly desirable properties [Hanson 2003, 2007]. The LMSR is used by a number of companies including Inkling Markets, Consensus Point, Yahoo!, Microsoft, and the large-scale non-commercial Gates Hillman Prediction Market at Carnegie Mellon [Othman and Sandholm 2010a]."
From https://www.cs.cmu.edu/~sandholm/liquidity-sensitive%20automated%20market%20maker.teac.pdf https://www.cs.cmu.edu/~sandholm/liquidity-sensitive%20autom...