I've been thinking a lot about the prediction market recently. Looking at leading prediction platforms like Polymarket and Opinion, they are actually making predictions around the same set of events, which means there are a lot of cross-platform arbitrage opportunities. But the bottleneck is liquidity—each platform's users are dispersed, and the depth is insufficient, making trading quite costly.

Interestingly, what if someone could combine the characteristics of prediction markets with the liquidity aggregation capabilities of the DeFi ecosystem? For example, building an application focused on prediction markets on top of a mainstream DeFi protocol, directly leveraging existing liquidity infrastructure. Could this solve the current liquidity challenges faced by prediction markets?

It seems this direction could be the next breakthrough for innovation. The combination of prediction markets + DeFi can preserve the core mechanism design of prediction markets while leveraging DeFi's liquidity advantages. This presents a promising space for the entire ecosystem.