How Does Liquidity Provision Work?
Robin’s liquidity layer is designed to align long-term capital with deep, efficient prediction markets. Now built on Berachain, Robin leverages Kodiak, a Uniswap v3-style CLAMM, to offer fine-grained liquidity control while farming native yield across the Berachain ecosystem.
Robin allows passive LPs to earn both swap fees and protocol-native yield, creating sustainable incentives for liquidity providers and ensuring tradable depth for market participants.
Core Mechanism: LPs Mint and Seed Markets
Liquidity Providers (LPs) kick off by minting equal amounts of YES and NO outcome tokens for a specific market using the Robin Minting Contract.
Here’s how the system works:
Deposit: LPs deposit a stablecoin (USDC.e) into the Conditional Token Contract.
Mint: The contract mints an equal amount of
YESandNOoutcome tokens.Provide Liquidity: LPs supply both tokens into a Kodiak CLAMM pool, forming the core liquidity for that prediction market.
Deploy Yield: The stablecoins used to mint the outcome tokens are routed into whitelisted yield strategies (e.g. Berachain-native protocols like Berps, Ethena, or other PoL-eligible vaults).
Through this flow, Robin transforms passive LPs into capital-efficient market-makers that:
Earn swap fees as traders speculate on outcomes,
Accrue yield on the stablecoin collateral while it is deployed in DeFi.
This structure means LPs don’t need to actively manage orders—they earn from both market volume and background yield.
Concentrated Liquidity and Structured Pricing via Kodiak
Robin leverages Kodiak’s CLAMM architecture to support concentrated liquidity bands, mirroring the effect of a limit order book:
LPs can define price ranges in which they are willing to provide liquidity, similar to placing passive limit orders.
Liquidity can be stacked around market-relevant prices (e.g. near 0.50) to ensure tight spreads and minimal slippage.
Because prediction markets often cluster near binary prices (e.g. 0.30 or 0.70), LPs can strategically position liquidity to maximize efficiency.
This provides:
AMM-style continuous trading with
Orderbook-style price discovery, optimizing for both UX and capital utilization.
Yield-Weighted Liquidity Strategy
Robin incorporates time-weighted yield accrual for LPs:
LPs who enter early in the market cycle earn a greater portion of the yield.
A soft cutoff is applied near market resolution to prevent last-minute minting designed to capture yield without providing real liquidity.
Yield is locked to LP tokens, and only redeemable at market settlement.
This mechanism preserves economic integrity and prevents yield arbitrage.
Summary
Robin’s liquidity layer on Berachain reimagines prediction market capital efficiency:
CLAMM-based price control via Kodiak for tight spreads and efficient routing
Vault-deployed stablecoin yield for background capital productivity
Time-weighted incentives to align LP behavior with healthy market function
By combining structured liquidity with composable yield strategies, Robin delivers a robust, sustainable system for trading the future.
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