Melee launches a PMM trading mechanism designed for permissionless prediction markets

Foresight News reports that Melee, a prediction market protocol in the Solana ecosystem, 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 combining a dynamic pricing curve with a minimum-return floor, addressing the issue of late-stage capital dilution affecting early participants' yields in traditional parimutuel markets. PMM enables markets to open from the very first contribution of capital without requiring professional market makers, with settlement conducted peer-to-peer among participants. Early participants and those involved in the presale phase can earn counterparty liquidity rewards, while non-directional capital can exit early via the cashout LP vault and obtain returns.

According to a previous report by Foresight News, Melee completed a $3.5 million pre-seed funding round in September 2025, with participation from DBA, Variant, and angel investors. The Alpha phase went live in October of the same year.