Chapter 03 · Liquidity

Self-custody tokens for liquid markets

Liquid markets become self-custodied ERC-20 YES and NO tokens for liquidity, collateral, and leverage.

Tokenization is when a pool becomes a real market asset. Your claim turns into plain ERC-20 YES and NO tokens you can hold in your wallet, lend, borrow against, route through other venues, or combine into more complex bets. The question is when a pool has earned that power. Section 4 comes back to the resolution benefit: because this claim is transferable, final settlement can take the time it needs without trapping every holder.

An arbitrary volume threshold, like $100,000 total volume, is lazy game theory. A whale could wash-trade both sides of a market just to force it to tokenize, or dump massive capital on a "sure thing" to trigger an order book that opens completely empty.

To prevent manipulation and preserve a simple refund path, the market uses a Robustness Strategy. A pool graduates only after both sides hold enough backing and funded, immediately fillable bid and ask depth remains above its threshold for 24 continuous hours. The separate resolution card confirms that future court funding is not part of this gate:

Requirements before tokenization
Adjust the market conditions to unlock tokenization.
🎯 Two-sided backing ✗ YES and NO ≥ $5k

Prevents a lopsided dump on a "sure thing" from triggering an empty order book.

YES Vol: $0  ·  NO Vol: $0
Resolution Independence ✓ Not a graduation gate

Tokenization depends on liquidity and market quality, not a separate court-funding target. Contributors advance the exact court fee only when resolution is requested.

📊 Funded maker depth ✗ Bid and ask depth ≥ $1k

Only escrowed, immediately fillable quotes count. Each qualifying quote is locked for 48 hours, leaving at least 24 hours of non-cancellable life when the gate completes.

Bid depth: $0  ·  Ask depth: $0
Conditions hold continuously ✗ 0 / 24 hours

The clock starts only when every funding check passes. Any shortfall resets it to zero.

A whale that posts large funded quotes on both sides supplies the same executable liquidity as a market maker. Those quotes remain exposed for 24 hours, so other traders can accept any bad price. If the quotes still satisfy the gate afterward, at least 24 hours of their non-cancellable life remains to seed the new book. This proves funded market depth, not that the capital came from different people.

💬Post a questionseed it with a dime
🎯Pool fillsodds = the ratio of sides
💸24-hour liquidity gatefunded on both sides
📊Order book openspros price the risk
Every market is born a pool and earns its book. Market liquidity is not subsidized, nobody quotes blind, and the first dollar of liquidity is the creator's own bet. Court funding stays separate until contributors advance the exact fee at resolution.
The questionBorn a poolBorn privateGrown a book
Cost to createA dime, the creator's own first betYour side of the bet, at any sizeNothing extra; the book is earned by holding funded two-sided depth for 24 hours
Who sets the priceNobody; odds are the ratio of the two sidesYou; name the odds, takers accept themProfessionals quoting their own risk
Fixed oddsPool bets drift; a standing offer becomes fixed when it fillsYes; the gross stake ratio is fixed at acceptanceYes; you trade at the price you see
Exit before resolutionPositions settle with the final answerBoth sides remain securely escrowedSell whenever a buyer is standing there
Where the position livesA claim inside the poolIn escrow between invited partiesPlain YES and NO tokens in your own wallet

This is where the custody complaint gets its answer. A YES token is not an entry on anyone's book. It is a bearer asset: post it as collateral in a lending pool, move it to any venue that will take it, or hold it through resolution in a wallet only you control. Nobody can freeze the account, because there is no account. Gas is sponsored for verified humans, so holding and moving the tokens never requires pre-funding a wallet with some second currency. If every OmenMarketMaker interface vanished tomorrow, the claim in your wallet would still be yours.