Aerodrome will launch the Predictive Allocation mechanism in July, introducing prediction market concepts to optimize liquidity incentives.

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Deep Tide TechFlow News, June 15th, according to CoinDesk, the largest decentralized exchange (DEX) in the Base ecosystem, Aerodrome, will launch a new Predictive Allocation mechanism in July.

It is understood that this mechanism will change the traditional method of distributing liquidity incentives based on historical performance, instead allocating resources based on market participants' predictions of future liquidity demand.

According to the design, participants who can accurately forecast which trading pairs or markets will generate higher liquidity demand in advance will have the opportunity to earn higher returns.

The Aerodrome team stated that Predictive Allocation combines the design concepts of prediction markets and automated market makers (AMM), aiming to improve the efficiency of liquidity incentive allocation through a market-based expectation mechanism.

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