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Likey’s unique Split and Merge mechanics are the foundation of our share-based trading model. By allowing traders to move between cash and shares instantly, we eliminate the need for traditional “counterparty hunting” for every trade.

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The Complete Set Model

Likely operates on the mathematical truth that for any binary event, the YES and NO outcomes together are a certainty. 1 YES share + 1 NO share = $1.00 USD

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Splitting (USDC → YES + NO)

Converting cash into shares. This is essentially “minting” prediction shares.
  • Action: You put $1.00 into the market vault.
  • Result: You receive 1 YES share and 1 NO share.
  • Utility: You can now sell whichever side you don’t want, creating your own inventory.

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Merging (YES + NO → USDC)

Converting shares back into cash. This is how you “burn” shares to realize profits.
  • Action: You return 1 YES and 1 NO share to the engine.
  • Result: You receive $1.00 from the market vault.
  • Utility: Exit your position and free your capital immediately.

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Benefits for The Market

These mechanics are a primary driver of Capital Efficiency. Because any trader can “Split” at any time, liquidity is never truly “missing” it’s just a Split operation away.
  • Inventory on Demand: Traders can create shares to sell whenever they see a price they like.
  • Stable Collateral: Every share is 100% backed by the USDC/USDe locked in the Split process.
  • Perfect Arbitrage: The Split/Merge mechanic ensures that the total price of a market (YES + NO) never deviates significantly from $1.00.

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Next Steps