We don't build another Polymarket — we build the Uniswap of betting. Polymarket proved a $10B+ market exists. Their orderbook has structural limits. We solve them by replacing peer-matching with liquidity pools — the same shift that took DEX volume from 0x to Uniswap.
Peer-to-peer · Polymarket / Kalshi
Bettors wait for counterparties
Liquidity depends on someone wanting the opposite side at the same price. Thin books, slow fills, no cashout, no sports.
vs
LP-backed · Sharpfi
LPs quote any market, any time
LPs set their margin and back both sides. Instant execution at any hour, on any market — sports and prediction unified.
01 · Mechanism comparison, dimension by dimension
Dimension
Polymarket / Kalshi
Sharpfi
Liquidity source
Other bettors must take the opposite side. Thin on new or long-tail markets.
LPs book any quote within their margin. Always available, every market, every hour.WIN
Execution
Match-or-wait. Partial fills, slippage on size.
Instant fill at the best pool quote. No matching delay.WIN
Cashout
Sell shares on the orderbook — if anyone's buying. Often impossible.
Algorithmic cashout from the pool. Anytime. +20–25% volume uplift.KILLER
3% on bettor profit + 3% on LP yield. Comparable take rate, dual stream.
Protocol capital
No protocol-owned pool — only fee revenue.
$2.3M LP seed earns 9% house edge × capital velocity. $3M+/yr at scale.MOAT
LP product
Doesn't exist. No yield, no share token, no DeFi composability.
ERC-4626 vault shares. Yield-bearing, composable, collateralizable across DeFi.MOAT
Risk position
Zero — house never takes the other side.
LPs absorb book risk, priced via dynamic margin. Managed with caps + reserve buffer.
User mental model
"Buy shares, hope to sell later." Trader mindset.
"Place bet, win, get paid." Familiar bookmaker mindset.UX
02 · The numbers that actually matter
Where LP-backed prints money that peer-to-peer structurally cannot.
Protocol LP yield
$3.1M/yr
Earned on our $2.3M LP seed at 9% house edge × capital velocity (2028 base case). Polymarket has zero equivalent.
Cashout volume uplift
+25%
Industry-standard volume increase when cashout is available. Translates to +25% on every fee stream.
Cashout spread
2–3%
Captured on every early exit. New revenue line that peer-to-peer cannot offer at all.
5-yr cumulative edge
~$15M
Protocol LP yield alone, compounded over the plan period. Pure structural advantage.
03 · The fee take-rate is roughly the same. The structural advantage is not.
On fees alone, peer-to-peer and LP-backed both clear ~3% of GBV. That's not where we win.
We win because Sharpfi is both an exchange and a market maker. Polymarket earns fees only on volume that finds a counterparty. We earn fees + yield on our deployed capital + cashout spread + the volume uplift cashout creates + the sports markets they can't enter.
Long-term moat: ERC-4626 LP shares attract serious DeFi capital (Folks, Aave, GMX users) who would never deposit on an orderbook product. Liquidity begets liquidity. The flywheel doesn't exist on the other side.
Polymarket proved the market. Sharpfi applies the AMM model to it — same shift Uniswap made to 0x in 2020, on a market 50× larger.
Positioning · for seed round conversations
04 · Honest risks — and how we manage them
Long-tail LP exposure
Multi-month prediction markets lock LP capital. Mitigated with 6–12 month max maturity, hard exposure caps (max 30% of pool on predictions), and tiered margins by tenor.
Adverse selection
Insider flow can hit LPs on opaque prediction markets. Mitigated with real-time asymmetric flow monitoring, dynamic margin shifts, and curated market whitelist for first 12 months.
Resolution risk
Bad calls damage trust. Mitigated by anchoring to UMA optimistic oracle (Polymarket's own standard) and Pyth for price-based markets. No subjective markets at launch.
