-101/-101 Mission: SX Bet’s Quest to Cut Sports Betting Vig by 90%
SX Bet: Revolutionizing Sports Betting for Advanced Bettors with Peer-to-Peer Betting, Rewarding Tokenomics and Open Access
Introduction
Sports betting is a world full of “industry standards”.
One industry strandard that refuses to go away is the 4.8% vig that (almost) all sportsbooks charge. This represents the implied fee that all bettors pay when they use sportsbooks. While new crypto sportsbooks like Stake, Rollbit, and Sportsbet.io have been innovative in pioneering the acceptance of crypto for sports betting, they have done nothing to disrupt the industry standard vig.
We think it’s time for a revolution.
It’s time to make sports betting more equitable, accessible, and rewarding for all sophisticated sports bettors out there.
SX’s mission is simple: we aim to slash betting costs (i.e. the vig) by 90% from 4.8% to 0.5%. This represents a 10x improvement from the industry standard odds of -110/-110 (1.90/1.90) to industry-leading odds of -101/-101 (1.99/1.99). In simple terms, this means a $100 bet on a 50–50 outcome pays you $99 in profit — not $90 like it does currently — a 10% higher payout for bettors.
Our strategy? Utilize the unique advantages offered by building our entire technology stack using web3 rails.
🤝 The Power of Exchange Betting
SX Bet is a sports betting exchange, built on the principle of peer-to-peer betting. Unlike popular crypto sportsbooks like Stake, Rollbit, and Sportsbet.io, where they set the odds, at SX Bet, every bettor can set their own odds. In traditional finance, exchange markets, also known as auction markets, have numerous advantages over dealer markets.
They have have improved liquidity, better transparency, and enhanced price discovery. SX has taken this concept to the sports betting space with its unique web3 non-custodial betting exchange.
- 💧 Liquidity: As a sports betting exchange, SX Bet aggregates orders from various buyers and sellers, creating a deep, liquid marketplace. The potential for all market participants to place direct orders fosters greater liquidity, a feature that sophisticated bettors value highly
- 📊 Transparency: Every bettor on SX Bet can observe the depth of the market, line movement, and every bet that has taken place, all information that is crucial for efficient price discovery. This feature offers a stark contrast to traditional sportsbooks, which are incredibly opaque.
- 📈 Price Discovery: Increased transparency and liquidity facilitate efficient price discovery, the process by which the market determines the probability of any outcome. SX Bet’s concentrated marketplace allows efficient price formation, a stark difference to sportsbooks like Stake, Rollbit, and Sportsbet.io.
The paper “Transparency and Liquidity: A Comparison of Auction and Dealer Markets with Informed Trading” published by Marco Pagano and Ailsa Roell, shows that “greater transparency generates lower trading costs for uninformed traders on average.” Exchange markets are far more democratized, encouraging competition, transparency, and price discovery. This in turn naturally drives down the vig for other bettors, thereby increasing liquidity, and creating a far more efficient market.
💰 Bet Mining: Become an Owner as You Bet
Perhaps the most revolutionary aspect of SX Bet is our approach to rewarding users: SX bet mining. Every time you win a bet on SX Bet, you earn SX tokens, which are effectively ownership in the platform and underlying blockchain. Bet mining aligns the interests of the platform with its users and enables the community to own a piece of the protocol.
One of the most dynamic effects of bet mining is what we call the ‘flywheel effect’. As more users use SX, the exchange becomes even more attractive to market makers, prompting more to come and offer more competitive odds, which in turn attracts more users. This perpetual cycle — a self-reinforcing loop — creates a powerful momentum that propels SX Bet forward.
This flywheel effect is the cornerstone of our success and bet mining is cricitial to sparking that cycle. Bet mining also encourages users to use the platform early on, as they can earn far more SX when the platform has less volume. This is represented in the chart above from Chris Dixon, showing that the financial utility of the token helps bootstrap network effects early on when application utility is relatively lower.
The current bet mining rate is 194 SX (~$19.40) per $1,000 won. There is 150,000 SX being issued through bet mining each week, though that rate has fallen from 200,000 SX last year and may decline again in the future.
👐 Winners Welcome
Crypto sportsbooks (like Stake, Rollbit, and Sportsbet.io) only make money when their users lose. This is because they are on the other side of every bet. Therefore, to protect their profits, these sportsbooks engage in the unethical practice of effectively banning or limiting winning bettors. They use automated software programs to raise betting limits for losing bettors, and lower them dramatically for winning bettors.
SX Bet embraces a fundamentally different philosophy: SX does not ban or limit winning bettors. This approach is not just fairer for users, but it also promotes a more active, informed, and efficient market in a number of ways:
- 💱 Activity: When platforms do not ban or limit winners, it encourages more betting activity in the market. Winners don’t face limits on their betting activity, meaning that they increase their betting volumes. Higher volumes of bets leading to greater availability of offers. Winning bettors often transition to providing liquidity themselves, increasing activity and liquidity even further.
- 📰 Information: Permitting informed bettors to operate freely also leads to more transparency. Sophisticated bettors (i.e. informed bettors) bet based on analysis, statistical models, or unique insights. By acting on their superior knowledge, they help make prices more informative and reflective of the market. The odds become more informative, reflecting the information held by the most informed market participants.
- 🏦 Efficiency: The active participation of winning bettors enhances market efficiency. In efficient markets, prices quickly reflect all available information. When informed bettors are allowed to trade freely, they contribute to the rapid incorporation of information into prices, making the market more responsive and efficient.
By promoting an open, fair, and participative betting environment, SX Bet builds an ecosystem that not only benefits users but also elevates the overall integrity and efficiency of the sports betting market. It aligns with the ethos of web3 space as well, which values access, transparency, and fairness.
Conclusion
SX Bet is pioneering an unprecedented transformation in the sports betting industry, offering sophisticated bettors an innovative platform that can cuts costs by 90% with the goal of reducing the spread/vig to an industry-leading 0.5%. Our unique proposition — peer-to-peer betting, bet mining, and open access — are our guiding principles that differentiate us from other crypto sportsbooks such as Stake, Rollbit, Roobet, and Sportsbet.io.
SX Bet aims to democratize the sports betting industry, offering bettors more than just a betting platform. With bet mining, every wager you make helps fuel the growth of SX Bet, and in return, you become a part-owner of the platform, earning SX tokens.
Finally, at SX Bet, we recognize the invaluable contribution of sophisticated and professional bettors, often banned or limited by crypto sportsbooks. That’s why our platform is specially designed to embrace winning bettors, acknowledging the value that they bring in terms of enhanced market liquidity, transparency, and efficiency.
SX is getting closer and closer to achieving this mission everyday. As we continually innovate to get there, the ethos remains the same: creating an equitable, accessible, and rewarding sports betting experience for all. With SX Bet, you’re not just placing a bet, you’re helping build a better future for sports betting.
Welcome to the revolution — SX Bet.
About SX
SX Bet is the #1 blockchain sports betting platform by by betting volume across all chains. All bets are peer-to-peer and settled on-chain. SX lets you get the best odds when you bet on sports with crypto, all from the security of your own crypto wallet. SX Bet has processed +$335,000,000 in betting volume. SX Bet is not available in the United States or other prohibited jurisdictions.
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