Unlike traditional Automated Market Makers (AMMs) that rely on user-provided liquidity, RAMM doesn't use liquidity providers in the same way.
The liquidity pool in RAMM is continuously generated by a group of individuals. This group consists of two parties selecting opposing outcomes.
I remember reading your ann thread on another forum and one of my questions was unanswered. How do people ensure these opposing outcomes work, how will it differ from simple market makers, and what happens if nobody matches the reasonable outcome decided by the market maker? Wouldn't that mean no trade will happen, and somebody can abuse that to attack the whole platform?
I believe it would help you tremendously if you make your platform newbie-friendly, or just simply it in general so that others can easily see the benefit at first glance. Otherwise, most of us would just ignore and stick with the usual liquidity generation method since it always works.
Thank you for your question. We appreciate inquiries like these. I'll provide an example for better understanding:
1. In AMM, market makers contribute two different tokens to the pool for swapping, with a rate of x * y = k. However, in RAMM, also operated by market makers but with liquidity pool using only one type of token, the formula is x * a = y * b. The results depend on the blockchain to determine the outcome. As you may know, at regular intervals, a block is generated, and the result is only confirmed when the block containing that result is generated. This ensures that opposing outcomes always function accordingly.
For instance, RammDex has recently transitioned to the Polygon platform for trading and result confirmation (cost-effective for investors).
On RAMMDEX, each RAMM trading session spans 82 blocks on the Polygon. The session starts from the first block of the epoch and runs until transactions stop being accepted at the 80th block. Results are then disclosed on the 82nd block. Two possible outcomes in RAMM on RAMMDEX are BIG-SMALL, where BIG represents results from 50 to 99 and SMALL from 00 to 49.
Example:
For BLOCK 52932099 of the Polygon with the numeric hash sequence
0x9eb19a69bce9cf23fa83793e3a6d296c1e218f975407b77dad859e136c33acb2
The last two digits of this hash are 32, resulting in a SMALL result.
If participants choose SMALL, they receive their initial bet + the winning amount (Bet amount * odds ratio).
If the participant chooses BIG, they lose their entire bet.