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.

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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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