Aerodrome is turning liquidity into a prediction market with its biggest upgrade yet
Key takeaways
- The DEX will roll out a new mechanism called Predictive Allocation in July, replacing the weekly voting system that has helped make the exchange one of DeFi's dominant liquidity hubs.
- The change represents more than a product upgrade.
- "The big innovation of Automated Market Makers was answering the question: what should the price of an asset be at any particular moment?" Cutler told CoinDesk in an interview.
The DEX will roll out a new mechanism called Predictive Allocation in July, replacing the weekly voting system that has helped make the exchange one of DeFi's dominant liquidity hubs. The goal is simple but ambitious: move liquidity to where demand is going, rather than where it has already been.
The change represents more than a product upgrade. He sees it as a new market primitive designed to answer a question decentralized finance has largely left unsolved, according to Alex Cutler, founder of Aeordrome developers Dromos Labs.
"The big innovation of Automated Market Makers was answering the question: what should the price of an asset be at any particular moment?" Cutler told CoinDesk in an interview. "Predictive allocation is answering the question of where does capital need to go."