βš™οΈCore Mechanics

The Mimicry Protocol consists of a series of open-source smart contracts and a GUI web application.

Illustration of Mimicry GUI with description of each component

πŸ”Ž 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 β€œunderdog” side of a pool has less capital at risk than the β€œfavorite” 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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