Answered raw tape
D 5 · C 4 · P 4 · Cm 4 4.30
Q Yeah, it's a good way of putting it, that every company is, uh, different, uh, in some new way, and so yeah, this could be yours. Um, what was the basis for the, um, decision where you won the election last year? Like, was there any interesting policy angle?
A Right, so the whole point is that the government cannot stop any type of contract unless it makes a finding that's against public interest, and it has to fall within certain categories of war, terrorism, assassination. And the CFTC was taking the stance that they were trying to fit elections into any of these things. They're like, oh, elections might be illegal under state law, and, you know, because betting on elections, there's this one state that in bucket shop law, they try to find something. To stop it. And we knew we were very, very clear on the law, like elections have economic impact. If the elections have economic impact, they need to be allowed to trade on a futures exchange or derivatives exchange. Um, and it was. Basically, I think what the, what the lawsuit did is it told the CFTC that they couldn't just do whatever they wanted. And that kind of like.
AI assessment note: “the government cannot stop any type of contract unless it makes a finding”
Answered raw tape
D 4 · C 5 · P 4 · Cm 4 4.30
Q market making because just the economic incentive is there. And so when something is at large scale, that's not as big of an issue, but I'm curious, What that was like in the beginning, like, were you guys doing the market making? Did you work with market making partners? Now, how do you incentivize market makers to participate? I'm just curious what the market making scale up has looked like.
A So there's actually, Two groups of contracts on, on markets, on, on caution, they behave very differently in the market making incentives are actually pretty different. So you have the long tail of markets, right? Like the ones like, well, one direction have a reunion or, you know, all those things. And they are actually very hard to price. And because there's not necessarily a lot of demand, we actually have to incentivize market makers, um, to, to come in and there's like liquidity incentives, all those things for them to come in. And I think it's actually how we think about how to build our moat long term is actually how do we get very, You know, sustainable solid liquidity in this long tail of markets. Yep. So we can get like, we have like, I think, 10,000, how do we get to 50, a 100,000 markets with still. But on the other side, you have the more classic, like, crypto sports, all of those guys, and, and on that side, it's actually a lot easier to market make, because you have very clear, proven demand, it's a lot easier to price. So the market making incentives on this side is actually, we don't pay them for it, we just rebate fees, but they have very, Very hard conditions to meet. They need to have uptime of certain amounts, spreads, and, and top of box size, and all of those things, um, because we see it more as like incentivizing stability of the book than it is incenti…
AI assessment note: “we don't pay them for it, we just rebate fees, but they have”
