Multiverse Finance: Lending and Ownership Across Conditional Worlds
Summary
The paper proposes organizing financial assets into parallel “verses,” each representing an event or set of possible outcomes. Assets tied to the same event can be used together: for example, collateral and borrowed tokens that both become worthless if the same outcome occurs may avoid liquidation caused by a sudden event resolution. The proposal extends this idea to lending, liquidity provision, and other applications within a verse.
The mechanism builds on probability events and partitions. Owners can split a claim into claims across a complete set of child outcomes, or combine claims from those outcomes into a parent claim. When an oracle resolves an event, incompatible verses disappear, allowing surviving ownership to be combined into the broader universe. A multiverse map is offered as one possible accounting structure. The paper is conceptual: it leaves oracle choice open and notes liquidity as a constraint, while providing no implementation results or performance evidence.
Key ideas
- A verse represents a set of possible world states associated with an event.
- Ownership can be split across a partition of outcomes or combined back into a parent verse.
- Event resolution removes incompatible verses and can allow surviving assets to return to the broader financial system.
- Lending between assets in the same verse is proposed to reduce liquidation risk from shared event outcomes.
- The paper leaves oracle design and practical liquidity questions unresolved.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.