Introducing LunaFi- The Decentralized Betting Protocol
LunaFi bring DeFi to betting allowing LPs to become the house
Why we are building LunaFi
It is no secret that gambling is big business, estimated to be over $1TN worldwide. What surprised me, given the recently explosive DeFi sector, is that here have been very few betting applications in it that have: (1) been able to attract mainstream customers; and (2) leveraged the full potential of this new technology. This is especially curious when one reflects on how
broken the traditional betting industry is.
I have first-hand experience of that market. Betting companies in the UK have refused to pay me out on my winnings on countless occasions. Why? Because the bet lost? Nope! It was because they just didn’t want to and will do anything, from citing ludicrous clauses in their Terms & Conditions, bonus conditions, and even “Know Your Customer” rules to delay withdrawals.
That’s assuming you manage to win with the odds they offer. Now, consider countries that haven’t even addressed gambling regulation. They are a paradise for bad actors, who offer poor odds and high margins in a layer cake system based on a tombola of credit. When you ask to withdraw, the music stops, and you are left to pick up the pieces. I am sure many of you are all too familiar with this process and recognise that there is little incentive for change, especially when most of these enterprises operate in the shadows.
At LunaFi, the team and I want to fix this by leveraging both gambling experience and DeFi.
What is LunaFi?
Put simply, LunaFi is creating a framework to allow all participants in the gambling ecosystem to interact in a trustless nature. With Web 3.0 there is simply no need for the platform to have custody of your funds, for the house to be centralized, or for you to need to trust any single individual.
LunaFi will have liquidity pools for each currency in which the platform supports bets (initially WBTC, WETH & USDC) and anyone can decide to deposit in these pools. In depositing, you become an LP “liquidity provider’ and get to take a share of the house. These pools only accept bets they can pay out and that fall within the risk parameters of the protocol. The terms are simple. LP’s take a share of the risk relative to their deposit in a pool, as the house expects to make a profit in the long run. Those who bet in Lunabets: (1) receive fantastic odds + liquidity; and (2) are guaranteed by the protocols’ smart contracts to get paid directly back to their wallet.
So, you now have the choice either to become the house or take on the house, which I think is brilliant..
All of this happens while a small percentage of each bet is sent to the platform treasury to fund further improvements, decrease supply, and reward players while contributing to any causes the community chooses.
What is Lunabets
Lunabets is the first sports gambling DAPP to take advantage of the LunaFi liquidity pools and smart contracts. One of the pain-points I have noticed in crypto sports gambling is how poor the user experience is and how difficult it is for non-crypto native users to interact.
We are partnering with existing technology providers to simplify the process and give people an unrivalled experience. Lunabets will be the first of many platforms to launch utilizing the LunaFi smart contracts and liquidity pools. It will be an amazing product, but it will not cater to every market in every language, which is why we will create an infrastructure to incentivize other
developers to build and develop their own products while ensuring that their interests are aligned with those of users, who must, at all times, remain protected
Why the Polygon?
This will ensure that gas fees (the cost to submit a transaction on the blockchain) remain negligible and that our protocol will operate smoothly.
LunaFi will initially launch on Polygon, which is a Layer 2 scaling solution to Ethereum. If you are reading this and have no idea what I am talking about, Ethereum presently has capacity issues limiting the number of transactions it can process per block. The network has become congested. Polygon & SX can handle significantly larger volumes at a fraction of the cost.
Funding
We are proud to announce that we have closed our seed raise and strategic raise with the help of some great VC’s led by Digital Strategies & Yolo VC. We have raised over $2.1M to date and shortly closing our private round with a total raise of $5.35M
Gamified IDO & Liquidity Generation Event
LunaFi crash launched 1st April. Users can now bet to take part in the public sale allocation with the TGE on the 15th April. Learn more about the game at docs.lunafi.io or on our socials. The launch is fair & all liquidity will be added to our initial pairing on Quickswap.
Want to learn more about the project?
Check out LunaFi.io to keep abreast of all updates. You can find all the links to social channels there, as well as to documents that will help you take a deeper dive into the platform mechanics.
Please feel free to join Discord, where you can ask the team any questions you may have.
