Paradigm Proposes Private Opportunity Markets for Prediction

Paradigm has designed a new private prediction market model, dubbed “opportunity market,” where institutions supply liquidity and only see market prices until after a defined window, preventing information leakage. Spotters can bet on events—like signing an unsigned artist—without traditional counterparties. Institutions commit funds (e.g., $25k) to automated market makers. Early bets push price up, signaling opportunities. After the “opportunity window,” positions and prices are revealed; if the outcome occurs, traders receive payouts. The opportunity market uses privacy controls to guard price data, supports both AMM and order-book liquidity, and can implement “front-N” markets to cap commitments. Paradigm addresses core challenges in prediction markets: matching counterparties, protecting private signals, and aligning incentives. Reputation commitments and trusted execution environments (TEEs) curb exploitation. This concept opens new DeFi pathways for private prediction markets.