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You know I'm gonna have to do an analysis on this now.
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Looking forward to it.
They are aware of some of the shortcomings of the specific function they chose and are working to implement a more sophisticated market maker formula, as well as some sort of order book functionality.
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This should be fun. Looks a bit like a logit
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Same idea
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It's explained in this guide for market creators.
Initial liquidity sets the parameters for how responsive the odds are to price.