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Producers (Liquidity Providers)
Producers provide low-risk liquidity to Pantomime markets in exchange for protocol fees and token rewards.
The third subset of players in our game are Producers and their role is to provide liquidity to Pantomimes. Some Directors may choose to also play our game as a Producer in order to ensure their Pantomime reaches key adoption levels. Producers have a lower risk-tolerance than Actors and they are motivated by their desire to receive an economic reward for providing liquidity to both sides of a Pantomime at a ratio nearly-equal to the True Odds.
Game theory will drive Producers to provide liquidity to the Pantomimes which they feel will be most used by the bulls and bears, because those markets will generate the most exit fees. Conversely, Pantomimes that have low demand from players in the community will lack Producer liquidity.
Last modified 9mo ago