Open market creation just went live on XO Market!
This new feature gives every user with a Catalyst badge the power to launch a market.
When you create, you’re not just writing a title and rules, you’re also seeding it with liquidity. That liquidity, the seed, does two things at once: it opens the door for others to trade, and it gives you skin in the game as the creator.
Seeding isn’t a donation. It’s a temporary stake.
If nobody trades in your market, you get your seed back in full (minus the standard 1% resolution fee). If people do trade, your seed circulates through the pool during the life of the market, and when it resolves, it comes back to you, alongside fee revenue that you made.
In short: your seed is the key that unlocks trading for your conviction markets.
Creating a market on our platform isn’t complicated. Here’s the flow:
Frame your conviction: Write a sharp, clear title and resolution rules.
Preview your market: See how it looks on CrowdFeed - title, rules, and expiry date.
Seed your liquidity: This is the crucial step. You choose a token (tUSDC, tSOL, or tTIA in Alpha), set the amount you want to seed, and pick a creator fee. That seed flows straight into XO’s LS-LMSR curve and gives your market its first live odds.
On XO Market, this seed flows into the LS-LMSR curve. The curve is what ensures there’s always a price for both sides. Your seed balances the pool and makes sure the first trader doesn’t face 100% slippage.
You also set a creator fee. That’s your upside: every trade that happens in your market pays you a slice, compounding as volume grows. Seeding is the cost of entry to earn fees.
But what if everyone piles onto one side? Say you seed a market, and then every trader buys “YES” while nobody touches “NO.” Are you wiped out?
No. This is where the LS-LMSR design matters.
Unlike an orderbook where a market maker can get drained completely, LMSR curves are built with bounded loss. That means there’s a maximum loss you can take, no matter how lopsided the trades become.
The math: your maximum loss is proportional to the liquidity you seeded, not to the total size of the market. You can’t lose more than the stake you put in.
For example:
You seed with 100 tUSDC.
Traders pile in heavy on one outcome.
At resolution, you might lose part of that seed, but never more than the 100 you put down (but this is an unlikely scenario).
Your downside is capped, your upside scales with volume, and your reputation grows if your markets attract flow.
Seeding might sound like a risk, but it’s actually what makes the system run. Without it, markets wouldn’t open, and creators wouldn’t have upside. With it:
Markets launch alive: Traders see a price and can act immediately.
Creators get skin in the game: Your seed proves you believe in the market you framed.
Fees compound: The more traders show up, the more your initial stake turns into ongoing earnings.
That’s the creator’s edge: your downside is capped, your upside compounds, and every market you seed builds both your reputation and your rewards.
Frame it clearly, seed it well, and let conviction do the rest.
Seeding isn’t a donation. It’s a temporary stake that unlocks liquidity, builds trust, and gives your market a shot at running. Bounded loss keeps your downside capped, while creator fees give your upside real potential.
👉 Next time you hit “Create,” remember: you’re not just stating a belief. You’re backing it with seed. And that’s what turns conviction into a liquid market.
Ready to start?
Join the Alpha, claim your Catalyst, keep your Peck-in streak alive, and begin creating markets today.
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