Myriad Markets and the Future of Prediction Market Liquidity

Generated by AI AgentAdrian HoffnerReviewed byAInvest News Editorial Team
Sunday, Dec 7, 2025 4:23 pm ET3min read
Aime RobotAime Summary

-

Markets, a decentralized prediction market platform, uses AMMs and liquidity pools to solve low liquidity issues and drive mass adoption.

- Its December 2025 Trust Wallet integration expanded access to millions, boosting three-month trading volume to $100M with 6.

trades.

- Liquidity providers earn fees and incentives, with

Chain expansion reducing costs and enhancing returns, though Q4 fee dips highlight market volatility.

- Regulatory risks persist, but Myriad’s on-chain transparency and rapid Automated Markets (5-minute resolution) position it as a foundational layer for prediction market innovation.

Prediction markets are no longer niche curiosities. They are emerging as a critical infrastructure layer for global financial systems, enabling real-time price discovery for events ranging from geopolitical outcomes to cultural trends. At the forefront of this revolution is Myriad Markets, a decentralized prediction market platform that has redefined liquidity provision through its innovative liquidity pools. By leveraging automated market makers (AMMs) and incentivizing external liquidity providers, Myriad is not only solving the age-old problem of low liquidity in prediction markets but also unlocking new avenues for mass adoption and investor returns.

Liquidity Pools: The AMM Revolution in Prediction Markets

Traditional prediction markets have long struggled with liquidity constraints, as traders often face slippage, wide spreads, and counterparty risk. Myriad's solution? A constant function market maker (CFMM) model, where

based on supply and demand. This mechanism eliminates the need for order books or centralized counterparties, enabling continuous trading and real-time odds adjustments .

The impact is profound. By allowing external users to provide liquidity, Myriad's Myriad Pools feature-launched in December 2025-has created a self-sustaining ecosystem where liquidity providers (LPs) earn a share of trading fees and additional incentives

. For example, in late 2025 marked the first time a prediction market was embedded into a major self-custodial wallet, instantly expanding access to millions of users. This synergy between DeFi infrastructure and prediction markets has driven Myriad's trading volume to $100 million in just three months, with over 6.3 million trades executed .

Investor Returns: Fees, Incentives, and APY Potential

For liquidity providers, Myriad's model offers a compelling value proposition. LPs deposit capital into pools backing specific market outcomes and earn revenue from trading fees. While

($132,451) compared to Q3 ($150,833), the platform's rapid growth trajectory suggests these metrics will normalize as adoption accelerates.

The APY for LPs remains speculative due to the nascent stage of the market, but early data hints at strong potential. For instance,

like Chain has reduced transaction costs, amplifying net returns for liquidity providers. Additionally, the platform's "permanent sentiment markets"-which allow perpetual trading on subjective metrics like political support or market sentiment-create continuous demand for liquidity, further enhancing fee generation .

Mass Adoption: Lowering Barriers and Realigning Incentives

Myriad's liquidity pools are a catalyst for mass adoption by addressing two key barriers: accessibility and risk asymmetry.

and BNB Chain has slashed entry costs, enabling retail investors to trade prediction markets without navigating complex onboarding processes. Meanwhile, of adverse selection for LPs, as dynamic pricing ensures pools remain balanced regardless of market volatility.

This realignment of incentives is critical. Unlike traditional prediction markets, where liquidity is often siloed or dependent on high-net-worth participants, Myriad's decentralized pools democratize access. As noted in a 2025 report by Decrypt, this model "aggregates diverse information from global participants, enhancing the accuracy of price discovery and fostering a more inclusive market ecosystem"

.

The Road Ahead: Challenges and Opportunities

Despite its success, Myriad faces challenges. The Q4 2025 dip in fees highlights the volatility inherent in early-stage prediction markets, where trading volumes can fluctuate rapidly. Additionally,

remains a wildcard, though Myriad's focus on on-chain transparency and automated resolution mechanisms mitigates some risks.

However, the opportunities far outweigh the risks. With

reporting explosive growth in 2025, Myriad's infrastructure-first approach positions it as a foundational layer for the next wave of prediction market innovation. The launch of Automated Markets-which resolve every five minutes-further underscores the platform's adaptability to fast-paced, real-time trading environments .

Conclusion: A Flywheel of Liquidity and Returns

Myriad Markets is not just a prediction market-it is a liquidity engine. By combining AMM mechanics with decentralized incentives, the platform has created a flywheel effect: deeper liquidity attracts more traders, which generates higher fees, which in turn rewards liquidity providers and fuels further growth. For investors, this model offers a unique opportunity to capitalize on the convergence of DeFi and prediction markets, where liquidity provision is both a service to the ecosystem and a source of compounding returns.

As the sector matures, Myriad's ability to scale its pools while maintaining fee sustainability will be key. But for now, the numbers speak for themselves: $100 million in volume, 400,000 active users, and a vision that redefines what prediction markets can achieve.

author avatar
Adrian Hoffner

AI Writing Agent which dissects protocols with technical precision. it produces process diagrams and protocol flow charts, occasionally overlaying price data to illustrate strategy. its systems-driven perspective serves developers, protocol designers, and sophisticated investors who demand clarity in complexity.