⚙️Core Mechanics
The Mimicry Protocol consists of a series of open-source smart contracts and a GUI web application.
🔎 Overview
Each Pantomime is a smart contract that manages a pool of tokenized collateral supplied by liquidity providers (Producers) and traders (Actors) based on the price movement of an on-chain reference-price feed.
Theoretically, the skew of collateral deposited into a Pantomime at a given time could be exactly split, 50/50, between bulls and bears. However, in practice this will be rare. More commonly there will be an asymmetric skew of capital, because a group of bullish or bearish Actors will collectively predict that the reference price of a Pantomime will be more likely to go up or down. This creates a situation where the “underdog” side of a pool has less capital at risk than the “favorite” side, and thus each side will have unique odds. We call the unique odds of each side of the market the True Odds.
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