Executive Summary
Path Protocol represents a fundamental reimagining of prediction market infrastructure on Solana. While platforms like Polymarket have demonstrated the power of prediction markets with $3B+ in 2024 election trading volume, the industry remains fragmented, capital-intensive, and inaccessible to most potential creators.
The Core Problem:
Current prediction market platforms require significant upfront capital, operate as closed ecosystems, and fail to properly compensate market creators. Traditional AMMs need liquidity providers who face impermanent loss, while order books suffer from thin liquidity and high slippage.
Path's Innovation:
Path Protocol solves these problems through three breakthrough innovations:
Phased Dynamic LMSR: Zero-capital automated market maker that eliminates the need for liquidity providers while providing instant, deep liquidity
Permissionless Platform Ecosystem: Third-party interfaces can register, create markets, and earn revenue share, creating a flywheel of innovation
Fair Value Distribution: Market creators earn perpetual fees, platforms earn revenue share, and PATH stakers capture ecosystem growth
Market Opportunity:
The prediction market TAM is expanding rapidly beyond politics into sports, entertainment, finance, and custom applications. Path positions itself as infrastructure rather than a platform, enabling the entire ecosystem rather than competing within it.
Token Utility:
PATH serves three critical functions: resolution staking (ensuring market integrity), fee payment (transaction facilitation), and value capture (stakers earn from all protocol activity).
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