Odds Manipulation and Liquidity Providers

[akreider]

Today someone added $1 Liquidity to a sports market (Houston Texans vs Arizona Cardinals, Oct 24, 2021) and set the odds for No Contest at $1.00. Other users than added $850 liquidity before someone started selling the No Contest. The market eventually settled with Tie/No Contest at $0.03.

https://bafybeickragxfpsva6b5zbpcmfiu35aeuawuzmsscvmiyhpe44mbyxn6ty.ipfs.dweb.link/#!/market?id=0x1f3ef7ca2b2ca07a397e7bc1beb8c3cffc57e95a-166

I don't think the game was at risk of delay or cancellation.

One possible solution would be to warn people adding liquidity about checking the odds if the liquidity in the market is low or if they differ significantly from the odds of other sports books (is this available from an oracle?).

[akreider]

Also on these markets: https://bafybeickragxfpsva6b5zbpcmfiu35aeuawuzmsscvmiyhpe44mbyxn6ty.ipfs.dweb.link/#!/market?id=0x1f3ef7ca2b2ca07a397e7bc1beb8c3cffc57e95a-168

https://bafybeickragxfpsva6b5zbpcmfiu35aeuawuzmsscvmiyhpe44mbyxn6ty.ipfs.dweb.link/#!/market?id=0x1f3ef7ca2b2ca07a397e7bc1beb8c3cffc57e95a-157