Status: Draft idea, not currently implemented as of December 21, 2022

Maniswap V3 is an AMM for prediction markets that modifies Maniswap to use Uniswap V3’s concentrated liquidity.

The basic idea

Liquidity providers (LPs) can provide capital within a specified probability range on a prediction market and earn fees on trades conducted in that range.

By concentrating capital within a range, LPs can avoid situations where informed actors or news releases cause the probability to suddenly converge to 0 or 1. This allows them to more efficiently provide capital, meaning more liquid markets in general.

Maniswap V3 uses the same trick as Maniswap of parameterizing the pricing curve in terms of the current probability to allow the more efficient deployment of capital.

How it works