BETR unveils multi-currency betting
Announcement from BETR CEO Adriaan Brink
“Today I am excited to bring you news about a potential game-changer for the BETR ecosystem. I cannot over stress how important I think this is for the tokenomics of BETR as a whole.
A recurring question that I had throughout the ICO and after relates to the volatility of tokens against other crypto and fiat — and how we handle this in betting. If I place a $10 bet at 2/1 and then when I win I expect $30 back. And my perception of $30 is related to where I perceive value.
While there is a correlation between different sources of perceived value the reality is that in today’s world fiat ($/£/EURO …) still sits at the top of the tree — followed by other assets (gold …) or cryptos roughly in line with their size. And with the crypto crash of the past year this has hit home to many who were venturing into a new frame of thinking — where their perceived wealth took a hit because they denominated it in one or other crypto which lost value against the “real world” fiat currencies.
Enter the paradigm of tethered currencies such as Tether (USDT) which are supposedly secured by “real world” wealth and stablecoins such as debt backed maker dao — all striving to somehow achieve a stability in crypto wealth while remaining independent of the thing they are in parity with.
At BETR we are fortunate that our problem is somewhat smaller (in risk scale anyway) in that the length of time for the average bet is relatively small. So any stability around the coin only has to survive the time that the bet remains un-resulted. And for most bets that’s a matter of less than a day.
So … we have a problem with a potential solution.
Enter multi-currency Betting
We need to stabilise the exchange rate around a bet but ONLY for the period of the bet resulting. We also need to do this in a way that is robust and secure and it needs to have sufficient collateral to work. By backing all bets onto a BETR denominated layer pool (remember that “global liquidity pool” we talked about in the ICO?) we have a controlled environment. We know the ratio of tokens available for exchange hedging against those committed to lays — in real time. We know the exchange rates on exchanges against existing crypto pairs — in real time. We know the lifetime of a particular bet. We can calculate the volatility of these pairs. So — we can provide a robust foreign exchange mechanism.
Today we introduce native ETH betting secured by the BETR liquidity pool of peer-to-peer layers. From a betting perspective the change is small — you can now bet in either BETR or ETH. If you bet in ETH you will be paid winnings at the correct amount in ETH. Simple. And it works. Seamlessly.
Looking to the future and this brings an exciting addition to our platform. We are working on adding cross-chain crypto currencies such as EOS and LTC to the client and hope to have more news on these soon. We are also, as a part of this change, moving to a technical architecture where we will be able to migrate the core systems from Ethereum if this is the right way to go. We have been looking at alternatives for some time but the optimal answer is not yet obvious. And finally — we are in a position where we can relatively easily put in place exchange agents with crypto currency including local tethered coins with local payment presences.
How does it work?
A bettor simply chooses the currency that they wish to bet in. The system is now multi-currency — bets are be stored in any one of the supported currencies and mixed on the bet history (and of course in the underlying smart contracts).
Every bet is recorded with a fixed exchange rate which is used to calculate the winnings (if applicable). The bet is then placed against the peer-to-peer layer at the BETR amount according to this rate. From the layer’s perspective this is a BETR bet — layers will always lay in BETR and the underlying escrows will always happen in BETR — this is fundamental to the concept of BETR. Affiliate payouts and any other rev shares will also remain in BETR. The underlying liquidity pool remains in BETR.
The nett effect of this will be that net losses in other currency betting will require further BETR being used in the system. These will be sourced from treasury reserves and by buying on exchanges. Ultimately this leads to an influx of liquidity to the BETR system.
We have retained the free ether for gas concept for all BETR transactions (whereby we supplement your wallet ETH balance to cover the gas) within the betrwallet and you will still not be able to bet or withdraw these ETH balances. Any ETH in your wallet from any other source will be freely moveable and usable. Please note that we will not be covering gas costs for ETH transactions including bets”