Documentation
CONDUIT Protocol
Neutral infrastructure for connected prediction markets.
Introduction
Prediction markets are powerful because they transform beliefs into prices. Their biggest limitation is structural: every market is isolated. Liquidity is fragmented, capital is inefficient, and correlations between outcomes remain invisible.
CONDUIT is the neutral layer beneath these markets. It lets a single pool of capital serve a cluster of related questions while preserving transparent, onchain settlement.
Architecture
The protocol has three core primitives: markets, clusters, and a shared liquidity vault. Markets expose binary or scalar outcomes. Clusters group markets with measurable correlation. The vault routes liquidity and continuously checks aggregate solvency.
Liquidity Clusters
A cluster is a set of markets whose outcomes share economic or informational drivers. The cluster manager records membership and correlation bounds. The protocol uses these bounds to allocate capital where it can support the greatest amount of open interest.
Solvency Model
Solvency is evaluated at the cluster level, not just per market. Each position contributes to a worst-case payout surface. The vault must maintain a configurable safety margin above the maximum correlated liability before accepting new exposure.
clusterSolvency = assets / maxCorrelatedLiability require(clusterSolvency >= safetyMargin)
For Liquidity Providers
LPs deposit assets into a shared vault and receive proportional claims on fees generated across the cluster. CONDUIT surfaces exposure, utilization, and solvency in real time so LPs can make informed allocation decisions.
Smart Contracts
The protocol is designed around small, composable contracts with explicit roles and emergency controls. Contract addresses will be published with the first public testnet release.