Market Models
PNP Protocol offers four market models across Solana and EVM chains, each designed for different use cases.V2 — Pythagorean AMM (Solana)
The V2 model uses a Pythagorean bonding curve that splits liquidity equally into YES/NO positions, creating a balanced market from the start. Required Parameters:| Parameter | Description |
|---|---|
| Question | The binary prediction question |
| Expire Date & Time | When the market closes for settlement |
| Initial Liquidity | USDC amount to seed the market (split equally between YES/NO) |
Minimum market deadline is 2 days.How it works: Creator deposits USDC, which is split equally between YES and NO positions. Prices adjust via the Pythagorean bonding curve as traders buy and sell. At settlement, winners redeem their tokens for their share of the pool.
V3 — Parimutuel P2P (Solana)
The V3 parimutuel model lets traders choose their side and includes a configurable maximum pot ratio. All bets go into a pool, and winners share the total pool proportionally based on their stake. Required Parameters:| Parameter | Description |
|---|---|
| Question | The binary prediction question |
| Expire Date & Time | When the market closes |
| Choose Side | Which side the creator supports initially |
| Max Pot Ratio | Maximum ratio to control payout distribution |
| Initial Liquidity | USDC amount to seed the market |
PAMM — Virtual Liquidity AMM (EVM)
The Prediction AMM (PAMM) is a Virtual Liquidity CPMM deployed on EVM chains (Monad, Base, Polygon). A single collateral deposit creates instant, continuous liquidity — no LP tokens, no order books. Key Properties:- One deposit creates instant liquidity with virtual reserves derived from on-chain state
- ERC-1155 outcome tokens (YES/NO)
- Creator earns from protocol fee split + take fees that compound in reserve
- Settlement: winners split the entire reserve pro-rata
Bubblegum — Prediction Market Launchpad (Solana)
Bubblegum is a permissionless prediction market launchpad. Every market launches its own token on a bonding curve — no seed capital required. The bonding curve feeds a CPMM prediction market, creating two independent price axes: token price (attention) and outcome odds (probability). Key Properties:- Zero capital to launch — bonding curve provides liquidity automatically
- Every market is a tradeable token with its own ticker
- Graduates to its own permanent AMM pool when the curve fills
- Creators earn 0.5% of every trade
Comparison
| Feature | V2 Pythagorean | V3 Parimutuel | PAMM | Bubblegum |
|---|---|---|---|---|
| Chain | Solana | Solana | EVM | Solana |
| Pricing | Pythagorean curve | Parimutuel pool | Constant product (CPMM) | Bonding curve + CPMM |
| Token Standard | SPL | SPL | ERC-1155 | SPL |
| Creator Capital Required | Yes (USDC) | Yes (USDC) | Yes (ERC-20) | No |
| Liquidity Source | Creator deposit | Creator deposit | Creator deposit | Bonding curve (organic) |
| Token Per Market | No | No | No | Yes ($TICKER) |
| Graduation | No | No | No | Yes (to AMM pool) |
| Best For | Balanced AMM markets | Event-based betting | Fast-launch EVM markets | Viral, zero-cost markets |
Creating Your Market
- Choose your market type (General, YouTube, Coin, Twitter, DefiLlama, or Kalshi Derivative)
- Select your model
- Fill in the required parameters
- Provide initial liquidity (except Bubblegum — no capital needed)
- Your market goes live
Start with smaller liquidity amounts while you’re learning how the different models work.