a16z Advisor: Predicts that only 1.3% of political contracts in the market have liquidity, recommends introducing AI agents to provide liquidity

Odaily Planet Daily reports that Stanford Graduate School of Business professor and a16z & Meta advisor Andy Hall posted on X platform stating that his team has developed a new dataset focused on political prediction markets, liquidity, and settlement rules. The research found that the vast majority of political contracts in prediction markets lack activity, with only 1.3% of contracts having sufficient liquidity. Kalshi and Polymarket rarely list contracts with identical rules, leading to further fragmentation of liquidity.

Andy Hall proposed four improvement suggestions: first, list contracts on core issues and collaborate with independent organizations to define markets of social concern; second, pay market makers to inject initial liquidity into political markets; third, introduce AI agents to trade in areas where humans do not participate, generating price references needed by society; fourth, establish unified definitions and settlement rules across platforms. Andy Hall believes these measures will attract traders seeking to hedge political risks and turn prediction markets into the truth machines society needs.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Kalshi data: the probability that markets expect the Federal Reserve to hold rates steady this April is 98%

Gate News message, April 7, Kalshi’s latest data shows that the market is betting on a 98% probability that the Federal Reserve will hold steady in April this year, and a 2% probability of a 25-basis-point rate cut. As of now, trading volume in this prediction market has exceeded $10 million.

GateNews2h ago

Polymarket data: StandX has a 35% probability of reaching FDV over $200 million on the next day after launch

Gate News message, April 7, according to Polymarket’s latest data, the probabilities that the market is betting on for StandX to have FDV over $200 million on the next day after launch are 35%, over $400 million are 14%, and over $800 million are 11%. Currently, the total trading volume of this prediction market is over $1.29 million.

GateNews3h ago

Polymarket: Iran ceasefire probability is only 3%, and the surge in oil prices is hitting Bitcoin’s price trend

The expected shift around Iran ceasefire talks is toward pessimism, and the trading market shows that the ceasefire success rate set by Trump is only 3%. Iran rejected a short-term ceasefire proposal and put forward long-term political and economic conditions, further compressing the room for negotiations. Energy markets are strengthening in expectation, and the probability that WTI crude for April, which hit $120, rises to 77%. Crypto assets such as Bitcoin are under pressure during the phase when risk appetite declines, with capital flowing into traditional safe-haven assets.

GateNews4h ago

Kalshi Wins in New Jersey: Prediction Markets Get Federal Endorsement, Key Ruling in the Regulatory Authority Battle

American prediction market platform Kalshi made progress in its legal dispute with the state of New Jersey, as a court ruled that its contracts fall under federal regulation and are not gambling. The decision emphasized that the product meets the definition of a “swap transaction,” protecting Kalshi’s operations within the state. This case marks the first time a federal court has considered the legality of a prediction market, and increased attention will be paid to a unified regulatory framework going forward.

GateNews5h ago

A certain account bought $180k CS2 event MIBR win positions on Polymarket.

Polymarket reports that on April 7, in the match between MIBR and EYEBALLERS, an account bought roughly a $180k MIBR win position, which is currently slightly down. This event is a key matchup for PGL Bucharest 2026 and will affect qualification status.

GateNews6h ago
Comment
0/400
No comments