Performance

Performance

Jun 7, 2025

Jun 7, 2025

Why Prediction Markets Need Institutional Infrastructure

Prediction markets hit billions in volume but lack institutional infrastructure. Learn why portfolio margin, sub-10ms execution, and capital efficiency are the missing pieces.

The prediction market boom proved demand exists—Polymarket and Kalshi drove billions in volume. But they hit a ceiling. Why? Because they're built for retail, not professionals.

Market makers need capital efficiency. They can't lock up $100K to provide $20K of liquidity. Traditional prediction markets require isolated margin per position, making professional market-making economically impossible at scale.

Traders need speed. When earnings drop or CPI prints, milliseconds matter. Current platforms run on infrastructure designed for casual betting, not real-time financial decision-making.

The missing piece isn't demand—it's infrastructure.

Netty solves this with portfolio margining (5-10x capital efficiency), sub-10ms execution (CEX-level speed), and professional order types that market makers actually use. We're not building a better betting app. We're building the first prediction market that professionals can actually trade.

The playbook exists: Hyperliquid and Lighter proved you can bring institutional-grade infrastructure to DeFi without sacrificing decentralization. Now it's prediction markets' turn.

The opportunity isn't making prediction markets more fun. It's making them more tradeable.