How do I solve the liquidity problem on a new prediction market?

Every new prediction market faces the chicken-and-egg problem: users will not trade without liquidity, and liquidity does not exist without users. The Automated Market Maker (AMM) solves this by acting as an algorithmic counterparty. It provides instant two-sided pricing for every market, so users can buy and sell from the moment you launch. The operator seeds the AMM with a configurable subsidy (as low as $50 to $100 per market), and the AMM manages pricing and risk automatically. As organic volume grows, the platform transitions markets to the CLOB for tighter spreads.