Yeah so it looks like ecash DLCs run into similar problems with standard DLCs in designing a prediction market with an LMSR market maker.

We did some research into creating an LMSR prediction market with DLCs earlier this year. The main problem with it is you need to code up a transfer mechanism for DLCs, and there are much higher liquidity requirements compared to ecash.

We really did want to go for a non-custodial technology as the base, but it would just massively increase the cost of development and time to market. Ecash can enable a pretty good UX of a prediction market natively with Bitcoin, comparable or even better than polymarket. No authentication needed, as the ecash token is the authentication mechanism for you to redeem the value of your shares. DLCs may make the prediction market UX worse than other platforms, and I feel like the trade off wouldn't be very profitable.