LMSR EXPLAINED FOR DEGENS Scenario: Team A vs Team B. Current Odds: 50% ($0.50). If you ape $100k into "Yes," a linear market would send odds to 99% instantly. LMSR says "Not so fast." It forces the price to rise on a curve. 50% ➔ 60% is cheap. 80% ➔ 90% is expensive. It
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LMSR EXPLAINED FOR DEGENS Scenario: Team A vs Team B. Current Odds: 50% ($0.50). If you ape $100k into "Yes," a linear market would send odds to 99% instantly. LMSR says "Not so fast." It forces the price to rise on a curve. 50% ➔ 60% is cheap. 80% ➔ 90% is expensive. It