AI TRENDS | Melee Releases PMM Litepaper for Permissionless Prediction Markets

Solana ecosystem prediction market protocol Melee has released a litepaper for its Parimutuel Market Maker (PMM), a trading mechanism designed for permissionless prediction markets. According to Foresight News, the protocol says PMM improves on traditional parimutuel models by combining a dynamic pricing curve with a minimum-return floor to address the dilution of early participants' returns in later stages of traditional markets. Melee said PMM can launch markets from the first deposit without professional market makers, and settlements are completed peer to peer among participants. Early participants and those in the presale stage can receive counterparty liquidity rewards, while non-directional funds can exit early through the cashout LP vault and obtain returns. According to Foresight News, Melee completed a $3.5 million pre-seed funding round in September 2025, with participation from DBA, Variant, and angel investors. The project launched its alpha stage in October the same year.