Melee Launches PMM Trading Mechanism Designed for Permissionless Prediction Markets

Foresight News reports that the Solana ecosystem prediction market protocol Melee has released the Parimutuel Market Maker (PMM) litepaper. PMM is a trading mechanism specifically designed for permissionless prediction markets. Melee stated that PMM improves upon the traditional parimutuel mechanism by incorporating dynamic pricing curves and a minimum-return floor, addressing the issue of early participants' returns being diluted by late-stage capital in traditional parimutuel markets. PMM allows markets to be initiated from the first capital contribution without requiring professional market makers, with all settlements completed peer-to-peer among participants. Early participants and presale stage participants can receive counterparty liquidity rewards, while non-directional funds can exit early and earn returns through the cashout LP vault. According to previous reports from Foresight News, Melee completed a $3.5 million Pre-Seed funding round in September 2025, with participation from DBA, Variant, and angel investors. The protocol entered its Alpha phase in October of the same year.