Last cycle, x * y=k released a large amount of energy, opening the door to DEX; In this cycle, Ye's+No=1 also began to release energy, opening up the curtain for predicting the market, and even having the opportunity to reach more ordinary users than DEX. Coincidentally, @ chessxyz also shares a similar view. This is the interesting part of how the world operates, where simple formulas contain hidden magic that can unleash powers beyond people's imagination. At the beginning, Uniswap adopted a constant product market maker model with x * y=k. x and y represent the reserves of two assets in the liquidity pool, while k is a constant (initial reserve product). This multiplication equation does not require complex parameter adjustments or external intervention, and any transaction will automatically adjust x and y to maintain k constant. For example, if you buy y asset with x asset, the pool will decrease y and increase x, causing the relative price of y to rise. This simple formula implies a great deal of energy, mainly achieving automated price discovery+liquidity incentives+a certain degree of resilience and resistance to manipulation. This simple formula causes the prices of x and y to change in real-time based on supply and demand, without the need for traditional centralized order books, similar to a self regulating market. It will motivate arbitrageurs to engage in arbitrage and ensure price efficiency. Moreover, anyone can add liquidity, become a market maker, earn trading fees, lower participation barriers, and amplify liquidity. This formula has a disliked aspect called 'impermanent loss', but it also constrains extreme manipulation in this way. The implicit energy of yes+no=1 today is no less than x * y=k. In predicting markets such as Polymarket and Opinion, yes+no=1 represents a prediction of the probability of an event occurring. Yes shares bet that the event will happen, and no shares bet that it will not happen. However, the total price is always 1. Seemingly simple formulas conceal the power of information aggregation and probability. For participants, both participation and understanding are not complicated. This is an additive equation that can be simply understood as the basic formula of probability, where the total probability of an event occurring and not occurring is 1. Participants buy and sell shares, and the price reflects the probability. For example, if the yes price is 0.7, it means that the probability of an implicit event occurring is 70%. The reason why this simple formula has great energy is mainly because it achieves information aggregation, incentive reflection of real ideas, risk hedging, and reverse impact on society. Traders will buy and sell shares based on personal judgment or insider information, which will push up or down prices, resulting in the market eventually converging to the most accurate probability prediction at present. This is more reliable than polls or expert predictions. This is also the power of money participation. Moreover, the most subtle aspect of this equation is that it is a zero sum game. The people who make correct predictions benefit, while those who make incorrect predictions suffer losses. Participants dare not be ambiguous, and market prices aggregate and disperse information, forming the effect of "collective intelligence" and making it a more efficient decision-making tool. Participants can also use it for risk hedging, where companies or policy makers hedge risks based on probability, which in turn can affect the course of events. Ultimately, a simple addition equation is a binary constraint that incentivizes predictions towards the formation of a 'truth machine'. So, the next question is, what other simple formulas can create the next huge market? Looking forward to another 'magic of simple formulas'.