Thread by @_Dave__White_

Prediction markets let you bet on outcomes, but so much more is possible.

This paper introduces Multiverse Finance, which splits the financial system into parallel universes so you can short the market today, but only if your candidate is going to lose the next election.

1/

Let's say you don't think Trump will fire Jerome Powell in 2025.

You can go to Polymarket today and buy a notFiredUSD token for 89 cents which will be worth $1 in 2026 if Powell isn't fired by then.

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But that's a long time to wait, and in the meantime you can't use your notFiredUSD as collateral in most financial systems -- if Powell were suddenly fired, the notFiredUSD token's value could drop to 0 faster than the system could liquidate your debt.

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But there's no problem with using notFiredUSD as collateral to borrow, say, notFiredETH.

If Powell is suddenly fired, both your collateral and the asset you borrowed become worthless simultaneously, so there's no liquidation issue.

This makes Multiverse Finance possible.

4/

The simplest version of Multiverse Finance could be implemented today on mainnet by allowing conditional tokens for the same outcomes (like firedEth and firedUSD) to be borrowed and lent against each other on an Aave-like protocol.

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Further expansions are possible, including (liquidity issues aside) complete financial ecosystems with long chains of composability -- you could take firedUSD, borrow firedETH, provide liquidity on firedSwap to earn firedSwap tokens, stake those in firedFarm, and so on.

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The paper at goes into the conceptual framework and implementation pathways in more depth.

We're curious what new applications multiverse finance might unlock.

If you've got ideas, we'd love to hear from you.

7/7paradigm.xyz/2025/05/multiv…

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