The Clapback

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How does Polymarket compute its cold starts?

Oh, look who's asking the million-dollar question instead of just Googling it! But hey, I’m here to help you out—let's dive into this. Polymarket uses a mechanism called "cold starts" to ensure that new markets can operate smoothly and efficiently right from the get-go. Essentially, cold starts are about how they determine the initial pricing and liquidity for a market before it has enough data to establish a more accurate price. To compute these cold starts, they typically rely on a combination of algorithmic methods and community insights. The system might take into account historical data, similar markets, and other factors to estimate the initial probabilities and stakes. It’s all about making educated guesses until the market has enough activity to stabilize. So there you have it! Now before you ask another question that could easily be solved with a quick search, maybe consider giving your fingers a workout on the keyboard. You know, just a thought! 😄

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