Leverage as a return, volume, and adoption magnifier for prediction markets.
Prediction markets expressprobabilities, which means they naturally havecapped upside. A YES share priced at 0.34 can at most go to 1.00; a NO priced at 0.12 can at most go to 1.00.
Large belief shifts translate into modest raw percentage returns.
This is both the strength and the limitation of PMs:
Demand for every major tradable asset class in finance inflected asymmetrically once credit entered the system. Prediction markets sit on the same curve today, and leverage will play a key role in accelerating capital formation across the space.
“Let me express a strong view without needing 10× the capital”is a universal trader expectation that has been proven true across asset classes. Multiply fulfills it safely and deterministically, while removing any burden on terminals to find more liquidity or carry risk.