Where did Polymarket's chips come from? "Several" and "merger" in a book
If you have not read the first article, please read the first one before it. This is the last articlePolymarket: Why YES + NO must equal 1
AS WE SAID ABOVE, YES + NO = 1, LIKE A DOLLAR TORN APART. BUT THERE'S ONE QUESTION YOU DON'T THINK ABOUT: WHO RIPPED THIS DOLLAR? IS IT OFFICIAL
Many of our friends have doubts about how to price a new market when it's open and there's no one to trade. Is there an opportunity to open up and grab low-priced chips
This led to two new concepts: Split and Merge。
"Bankmarker": Split
YesPolymarketIn the small corner of the next single interface, there's an option that many people may not care about:
After the dot, we enter one and then click on Spritshares, and we do the printing. After signing the wallet, you will see in the Sell tag:
See, that's when my Up and Down had a share
DO YOU UNDERSTAND BETTER
This is the split of Polymarket, which, in plain words, can be split at any time in any market between two exchange coupons, YES and NO, at US$ 1。
So answer the first question. Who ripped this dollar? The answer is anyone can。
WHEN A NEW MARKET OPENS, WE CAN SPLIT AND HAVE LOTS OF YES AND NO CHIPS. YOU CAN FREELY PRICE THE YES AND NO IN YOUR HANDS, WHICH IS THE SOURCE OF THE MARKET CHIPS AFTER OPENING。
So, what's the application? Very much, when you need a lot of chips and the market is not liquid enough, you can build them by dividing them。
FOR EXAMPLE, WHEN YOU'RE IN A HOT SPOT, YOU DON'T LIKE IT, BUT IT'S NOT DEEP ENOUGH, SO YOU CAN PRINT YOUR OWN MONEY AND SELL THE CRAZYLY RAISED YES, LEAVING A LOT OF NO CHIPS, WAITING FOR PRICES TO RETURN TO RATIONALITY。
Of course, this example is just a picture of use, not as a specific strategy。
Crusher: Merge (merging)
Let's try this merger again:
After we type 1 and click on Merge Shares, and then sign the wallet, we complete the consolidation of the two exchange vouchers, and the $1 that has been opened is back, and the relative YES and NO share is gone。
SO IT'S LIKE A SHREDDER, CRUSHING YES AND NO AND PAYING YOU BACK A DOLLAR。
A LOT OF PEOPLE THINK THEY'VE BOUGHT THEIR OWN YES AND THEY CAN ONLY WAIT FOR SETTLEMENT OR SELL THEM. IN FACT, THE MERGER GIVES YOU A THIRD OPTION: BUYING NO TO MERGE WITH THE YES THAT YOU HAVE, TO BECOME A DOLLAR, WITHOUT WAITING FOR SETTLEMENT。
For example, in high frequency commercials, 0.3 bought YES, and the price may have risen to 0.8 in a second. It's a little risky for a marketer, but just after a second, Polymarket is a chain set-up, and it takes about five seconds for the chain to be packed to see the holder. This is mainly due to Polygon's main network (sometimes the network fluctuates, possibly longer)。
WHEN A MARKETER SEES NO SELLING 0.24, IT BUYS NO DIRECTLY AT 0.24, AND NOW YOUR CHIPS ARE YES (0.3 COSTS) PLUS NO (0.24 COSTS) AND MERGES DIRECTLY INTO $1。
FINAL TOTAL COST 0.54, TAKE BACK ONE, NET GAIN 0.46. YOU DON'T HAVE TO WAIT FOR THE YES CHAIN TO COME IN AND QUIT IN A FEW SECONDS。
This is a common technique used by many high-frequency traders and robots to lock profits in the shortest possible time and generate revenue from large fluctuations。
A way to survive as a businessman
Mergers and splits are generally less accessible to users, but are largely used daily as traders。
In some markets with high liquidity and volume of transactions, one 0.50 and one 0.51 are bought, with virtually no difference in prices。
But in my last article, the inactive market:
And you can see that one is 0.23, one is 0.25, and there's a little difference. In many inactive markets, these price differentials tend to be large。
For example:
- YES: ONE 0.40, ONE 0.60
- NO: BUY ONE 0.40, SELL ONE 0.60
THE PRICE OF ONE IS ADDED UP: 0.6 + 0.6 = 1.2 > 1, WHICH MEANS THAT IF YOU NOW BUY YES AND NO ON BOTH SIDES OF THE MARKET, IT WILL COST YOU $1.2 FOR A DOLLAR。
It is this dynamic, deep and price differential market that Split (separation) is doing a great deal。
YOU CAN SPLIT $1 NOW INTO 1 YES+1 NO。
YOU PUT YES ON 0.59, AND YOU PUT NO ON 0.59。
If the deal is made, you recover 0.59+0.59 = $1.18。
1.18-1 = 0.18, you make 0.18 net
This is what marketers do every day, and when markets are less liquid and worse, they generate large amounts of leverage through splits, and then hang up bills to provide liquidity to earn the middle price differential。
Sometimes marketers may accumulate large amounts of YES or NO in the hands of unilateral interests, and when liquidity does not satisfy their exits, they also choose to buy the other side of the Merge operation, an example that is mentioned in the chapter on "Crushers" and not repeated here。
By the way, you provide liquidity, and some markets have incentives, such as:
this means that you float down and down four columns with a minimum of 20 shares and a 50-dollar bonus. officially, there is a specific set of single-point and single-time calculations, and the final eligible persons share the $50。
At the earliest, the liquidity incentive was very high and has been significantly reduced. There is interest in this, and the official mobility incentive panel is available:https://polymark.com/rewards
Also, there are many strategies for doing business in the market, and this is just an example, not the best one. After all, it is the insider who is most afraid of being a marketer, who tends to leave the market with no business, so professional businesspeople have a very sensitive decision-making system, and when the market is judged to be one-sided, all the billings are removed immediately。
Question
The student's question should be understood after reading the article. That's a very good question. I'll share it with you here。
Finally
The two functions of Sprit and Merge, which appear to be very simple, represent two trade thinking。
THE ORDINARY TRADER IS IMMERSED IN STUDYING THE RISE AND FALL, MAKING A CHOICE BETWEEN YES AND NO。
Advanced players study mobility, using splits to generate price differentials, and merge to optimize exit paths。
I hope you can think from a number of angles when you trade. You might find more opportunities。
IT IS BELIEVED THAT AFTER THE LAST ARTICLE YOU LEARNED ABOUT YES + NO = 1, THIS ARTICLE CAN BE A DEEPER EXPERIENCE OF THE CLEVER DESIGN OF SPLIT AND MERGE, AND IF YOU THINK THIS ARTICLE IS GOOD, YOU WOULD LIKE TO FORWARD IT TO MORE PEOPLE。
If you're Polymarket, you have to read it"Babycare: Hands on your hands, 0 Threshold Polymarket."
And you'd like to see something or leave a message and I'll share it with you。
