PM hedging only beats insurance if you can finance the position. locking up capital for a months-long hedge kind of defeats the point when you're hedging because capital's tight.
so borrow against it, don't sell it. hedgers make the cleanest borrowers anyway no edge on the event.
(soon on the cusp roadmap)
Exactly
The unlock is not just making PM positions borrowable.
It is making them financeable at scale.
Risk metadata, dynamic LTVs, vault underwriting, liquidation paths, and settlement-aware collateral.
As PM prop desks scale, this becomes core market infrastructure.
Would love to compare notes.
there is a billion dollar opportunity in creating a token standard for prediction market positions that plugs into DeFi liquidity pools and enables lending/borrowing against PM shares
the core problem: PM positions go to zero at resolution so no lender touches them. a standard that wraps positions with risk metadata (probability, time to resolution, volatility) lets lending protocols price binary risk dynamically instead of avoiding it
connect this to the wave of prop firms emerging to fund PM traders
a lot of them will need infrastructure to extend capital against trader portfolios and manage binary resolution risk at scale
that infrastructure doesn't exist yet and the demand side is already forming. the supply side is wide open.
putting this out there for whoever wants to build it
Exactly
The unlock is not just making PM positions borrowable.
It is making them financeable at scale.
Risk metadata, dynamic LTVs, vault underwriting, liquidation paths, and settlement-aware collateral.
As PM prop desks scale, this becomes core market infrastructure.
Would love to compare notes.