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maltekliemann committed Nov 10, 2023
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Showing 1 changed file with 6 additions and 6 deletions.
12 changes: 6 additions & 6 deletions docs/learn/betting-strategy.md
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Expand Up @@ -158,12 +158,12 @@ than currently predicted by the market. But how can you expose yourself to the
market if you think that the prices are correct? This is where providing
liquidity comes into play.

The liquidity of a market is important when it comes to creating accurate
predictions. When a trader buys tokens, they are giving up information in
exchange for a potential pay-off (if they are correct, they make a profit). The
more significant the price movement, the more information they are providing.
But if prices slip too quickly due to a lack of liquidity, their profits are
comparatively small to the value of their information.
The liquidity of a market is important for creating accurate predictions. When a
trader buys tokens, they are giving up information in exchange for a potential
pay-off (if they are correct, they make a profit). The more significant the
price movement, the more information they are providing. But if prices slip too
quickly due to a lack of liquidity, their profits are comparatively small to the
value of their information.

Thus, informants and liquidity providers are taking opposite sides of a bet.
When liquidity providers sell to the informants, they are hoping that the assets
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