Mitosis launches 'Kaizen' beta…"Prediction market reflecting real demand"

Mitosis (MITO) said on the 30th that it has launched the closed beta service of its blockchain-based real-demand customized prediction market protocol 'Kaizen (Kaizen)'.

The beta service targets users who are using existing prediction market platforms such as Polymarket and Kalshi. The beta test will be carried out sequentially from mid this month. Through the beta test, features such as user-specified prediction creation, a Solver competitive quoting system, and a miUSDC-based payment structure will be released first.

Kaizen is a new protocol that combines the infrastructures of prediction markets and decentralized derivatives exchanges (Perp DEX). A Kaizen representative said, "Kaizen's goal is to build the next-generation prediction market that can turn any prediction users want into a market," and added, "(Through Kaizen) we will resolve the limitations of existing prediction markets and crypto options markets."

First, Kaizen identified the limitation of existing prediction markets as the 'discreet (Discreet) structure.' The discreet structure is a phenomenon where separate prediction markets are formed for each question, causing trading funds to be dispersed. Kaizen explained that users of existing prediction market platforms could only make simple choices such as yes or no within individual questions with limited liquidity.

There is also the problem of liquidity dispersion in crypto options markets. Existing options markets have a structure where product value steadily decreases over time. In addition, strike prices are fixed, which causes liquidity to be dispersed.

To solve these problems, Kaizen proposed a real-demand customized model that combines prediction market user experience (UX) and the liquidity of Perp DEX. The core consists of two elements: the Solver and miUSDC.

A Solver refers to a market maker that offers payouts according to user conditions and manages risk by using multiple perpetual futures trades. If a user's prediction hits, the Solver pays the payout; if it fails, the Solver takes the spread as profit. Kaizen explained, "Because the Solver proposes payouts, users can immediately create the predictions they want without creating a separate market," and "this can also mitigate liquidity dispersion."

miUSDC is a yield-paying stablecoin issued by the Mitosis protocol. Kaizen's payments and asset management are carried out through miUSDC. Kaizen users can receive interest while holding miUSDC until the prediction results are announced. Kaizen believes that additional yield based on the stablecoin can address the limitation of existing options markets, whose product value decreases over time.

In addition, Kaizen has made it possible through the Mitosis infrastructure to eliminate counterparty risk and increase the capital efficiency of Solvers.

A Kaizen representative said, "Prediction markets and options markets have long been trapped by structural constraints, making it difficult to create predictions with the exact price and duration that users want," and added, "Kaizen will combine the rich liquidity of Perp DEX-based infrastructure and a competitive Solver structure to provide a new form of prediction and risk management experience."