
founder @uselotusxyz — frontier market execution, RFQs, APIs & liquidity: https://xitter.cf/t.co/yD5SywJWXY— cypheroracle — building cross-venue rails
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Joined May 2011
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Mace retweeted
spent 11+ hours today deep in prediction market resolutions, UMAs, and venue rule differences for @uselotusai .
came away with the same conclusion:
the hardest part of prediction market infrastructure is not finding markets that look the same,
it’s knowing when they are actually safe to treat as the same market
from the outside, cross-venue prediction market infra sounds simple
- same event
- same headline
- same yes/no outcome
should be easy to connect, right?
not really
because similarity is where the trap is
a market on @Polymarket and a market on another venue can point to the same real-world event and still carry enough differences in wording, interpretation, or resolution logic to break your assumptions
and once your assumptions break, your routing breaks with it
that is how you end up with hidden risk, bad abstractions, and failing routes pushed downstream to traders
this is also why a lot of builders stay on the surface
the UI is easier
the dashboard is easier
the analytics layer is easier
the hard part is doing the slow work underneath:
reading the resolution criteria
studying how venues define outcomes
understanding when two markets are economically similar but not safely interchangeable
that is the layer we are building through at lotus
because traders should not have to manually inspect venue logic just to get better execution
builders should not have to rebuild market interpretation from scratch every time they want to integrate prediction markets
and institutions definitely will not scale into this category if the infrastructure underneath it is still fragile
most people see similar markets
we see the hidden differences that decide whether routing is safe or broken
that gap is a big part of what @uselotusai is built to solve.
Mace retweeted
I have a very strong researcher looking for work who specializes in technical academic papers.
If this sounds like someone you’re looking for, please reach out!
Mace retweeted
The goal is to find where a specific position can be executed with the best expected outcome after all costs
The test is whether a system accounting for fees, slippage, partial fills and hedging costs can outperform a basic price aggregator on the same position
Better execution should deliver a measurable edge, not just a better architecture
Mace retweeted
Imagine loosing because you used an aggregator.
A trader doesnt want just the best price, anyone can route to that.
This article details the biggest gap you probably missed out when executing that trade.
Mace retweeted
Replying to @macofweb3
this is the infra consequence of something i’ve been thinking about with resolution being part of the product
if two markets can look identical and still settle differently u dont really have a price comparison problem yet. u have to figure out whether they’re the same bet first
good piece my guy 🫡
xitter.cf/0xForecaster/status/21…
prediction market aggregation looks like a price problem until two “identical” markets resolve differently
same event, but the wording, cutoff, source and rules can all be different
before you route me to the best price, you first have to prove i’m buying the same thing
best execution starts before price
Mace retweeted
Great work, @macofweb3. Best art. this wk.
Mace retweeted
The bet on yourself is pre-seed, when you become post revenue with credibility and record only then can people bet on you.
Mace retweeted
VCs would write backing ambitious founders building in new categories and at the earliest stage and end up backing founders building the most generic solutions that aren’t scalabler, and leaving the ambitious founders saying it’s too early😅😂. Real life story btw
Mace retweeted
Hot take:
Prediction market infrastructure shouldn’t be priced on freemium or tier-based plans.
Especially when your infra isn’t giving users an unfair advantage. It can be gated because not all edge needs to be commoditized, but if you can’t make it free to use while capturing value without pushing the cost onto integrators and their users, what’s the worth?
Mace retweeted
Although we have a routing layer, its a 3rd of what our entire stack is. Routing is a part of the flow but execution and liquidity coordination for cross venue execution is the end goal.
Looking forward to the paper 🔥🔥
prediction markets already have plenty of venues and event contracts, covering both popular and long-tail markets
we don’t need new venues
What's left to build in prediction markets is the layer underneath the frontends
the liquidity routing that lets one order find the best price across every venue at once.
—-
the major bottleneck pms face now is execution
two venues can't talk to each other, even when they're pricing the same event.
the reason is straightforward;
a Yes share on @Polymarket isn't the same as a Yes share on @Kalshi, and neither is it the same as a Yes share on @trylimitless.
that alone makes something as simple as arbitrage hard to execute
the open product idea here is to position as the plumbing layer that routes trades across venues
you core target audience are:
- market makers quoting the same event on multiple platforms, they get one place to manage that exposure
- pro traders trading size, they get the best price and the arb, wherever it actually sits.
@uselotusxyz has identified this and is building for it. (article on them coming soon).
@river_markets is another startup doing something adjacent, they are more institutional focused and scoped to routing between Polymarket and Kalshi only
prediction markets need its own liquidity engines
Mace retweeted
Trend: we are seeing a sharp increase in startups who are raising capital and receiving investments in USDC. Smart funds understand smart money and smart teams. :)
Mace retweeted
Replying to @yungtesh
True, but in prediction markets fragmentation hits makers hard. Traders also get the short end of the stick. Makers find it harder to quote due to adverse selection and the inability to hedge the same position.
Informed flow is a problem on its own, and resolution incompatibility makes cross-venue hedging another hurdle.
RFQs won’t be efficient for single-venue execution under these constraints, but they are a big unlock for cross-venue trading if markets are resolution-compatible. Makers would then quote tighter because they can hedge their positions.
Mace retweeted
The reality of building in prediction markets for most teams is the way inability monetize their product to earn enough without increasing churn.
You charge a fee, retail traders default to using the venues themselves and the reality is you cant make enough to scale from builders fees or so you now you hit a roadblock.
Either sacrifice revenue for you to bootstrap users or even depend directly on what venues offer.
While building @uselotusxyz , we found a way through this and now we can easily say, that roadblock is fully resolved.
If you are a team currently dealing with this.
Send over a DM we got you
Mace retweeted
prediction markets becoming boring infrastructure is probably more bullish than another record volume month
FCMs can now process event contracts through the same clearing stack they use for futures + cleared OTC
once the back office stops treating prediction markets like some exotic product, institutional adoption gets much easier
the biggest PM unlock might be operational, not consumer
Mace retweeted
Glad to say our thesis papers are now published to the public
There’s so much alpha locked in each paper showing how much it takes to solve some of the hardest pains current prediction market infrastructure face and how we solved them.
Read that and more: uselotus.xyz/thesis




















