Royale Finance Unleashes iGaming Potential with iGDeFi
Royale is an iGaming DeFi protocol seeking to build a trustless ecosystem where iGaming platforms can access liquidity for their bankroll requirements.
The iGaming industry is expected to reach $127 billion by 2027. This growth will be led by online sports betting, online poker platforms, and online casinos. However, the current constraints of technology as well as barriers to entry for both users and iGaming entrepreneurs have throttled this development. The emergence of new DeFi tools can help overcome these constraints. Royale.finance will lead the way.
Royale sees a future that combines DeFi and iGaming to make a powerful new force in this quickly growing industry. We call it iGDeFi. With Royale Finance at the helm of this twin-powered ship, we aim to provide tools that create the best experiences for DeFi protocol users, gamers and iGaming entrepreneurs. Our iGDeFi concept is a compelling application of these new financial tools that have burst onto the crypto scene in 2020.
iGaming Faces Challenge Slowing Its Growth
The iGaming market is centralized between a few actors delivering online wagering products and services. While the top players in the industry represent $6.38 billion in revenues, the centralization creates an oligopoly where entry prerequisites make it almost impossible for new projects to compete with them. The current monopoly has negative impacts on market growth, hindering innovation. The incumbents maximize yields for their own benefit within a centralized governance model that prevents any changes.
Entrepreneurs and newcomers to the iGaming industry cannot compete. First, a lack of available liquidity for new and intriguing games and platforms crushes innovation. As a result, many players do not even enter the iGaming industry. Talented entrepreneurs quickly move on to more fertile startup grounds. One of these stifling limitations is the requirement for iGaming platforms to provide insurance that ensures that winner payouts can be made at any moment under any circumstance. Raising funds for a bankroll takes time, is complicated, and must be able to quickly scale to accommodate the volume played on the platform. This type of funding is difficult to obtain, leaving many new potential entrants that have developed fun, entertaining and fresh-faced platforms stuck when it comes to bankrolling and marketing them. New entrants simply cannot access the resources they need to grow.
Trust amongst operators and players is a second critical issue. Incumbents have already gained a form of player trust as they have been in the iGaming space for several years. Even if third party audits are performed to ensure security and a certain level of transparency, games can still be manipulated on the server side. New entrants, who lack insider status and are technologically constrained, perhaps by limited budget or perhaps by a lack of experience, hardly have the resources to build trust with gamers. If they try to maintain the same methods and technologies used by the incumbents, it is extremely hard for them to gain their players’ trust. New unknown brands need to gain traction before earning gamers’ trust, which can take years. However, with provably fair gaming, the lack of trust between users and new iGaming platforms instantly goes away. iGaming entrepreneurs can attract users to their platform without this constraint from Day 1.
Incumbents and new entrants are worlds apart. But recent advances in DeFi protocols can now be integrated to push forward innovation and trust. Royale will use the pooled liquidity models and governance structures of DeFi to overcome these challenges and accelerate the growth of an entirely new iGDeFi niche in the $100 billion-plus iGaming industry.
iGaming + DeFi = a Brand New World Of Opportunity!
The rapid growth of the DeFi ecosystem this year has so far captured more than $14 billion in total value of cryptoassets locked into decentralized protocols. Liquidity pools, liquidity mining, lending & borrowing protocols, automatic market makers, automated investment strategies, decentralized insurance and options protocols have all made a mark on our conscience this year. Royale believes this rush of innovation is the perfect complement to iGaming. The result should create a more fair, sustainable, and optimal value capture ecosystem. iGDeFi is applying the use of innovative DeFi tools in the iGaming industry. The cherry on top is that iGDeFi value flows should be largely uncorrelated to the ups and downs of the nascent DeFi asset market.
The Royale ecosystem will be a cross-chain DeFi solution that provides tools for entrepreneurs to fund the bankroll of their platforms and games via community smart-backed liquidity. The Royale community will provide liquidity in the form of a loan and receive stability fees from the iGaming platforms. This simple, yet powerful mechanism has the potential to trigger a wave of innovation in the space, lowering entry barriers to the iGaming industry for scrappy DeFi-infused gaming entrepreneurs.
Transparency is key in the Royale ecosystem. A precondition for accessing smart-backed liquidity is that Royale’s network participants must use provably fair technology, an algorithm that allows for a verifiable and untamperable source of truth that sustains a truly trustless network. Combined with the power of blockchain, Royale Finance will transform the iGaming industry from one that currently always suspects the house to one that will have no other choice but to implicitly trust it, largely because many of the mechanisms used to drive gaming logic will be on-chain as will some of the platform’s funding sources.
Finally, decentralization will be a priority. We intend to distribute $ROYA, the governance token of the Royale ecosystem to our liquidity providers through liquidity mining programs. Liquidity providers will be able to submit proposals, discuss them, and vote for them by staking their $ROYA. Three staking lots have been defined: Royale Queens, Royale Kings, and Royale Flush nodes. According to their rank, based on the amount of $ROYA staked, stakers will have different duties and rights.
To conclude, Royale Finance offers entrepreneurial freedom, fair competition, cross-chain liquidity, transparency and decentralization to its network participants. Blockchain technology was invented to support the creation of decentralized finance (DeFi). Now that the first wave of base layer DeFi protocols have established themselves in the crypto firmament, it is time to use this foundation to catapult ourselves into the proper transformation of niche industries that desperately could use blockchain assistance. DeFi has the capacity to transform the iGaming market. Royale Finance is doing it with iGDeFi.