UBet Sports: Liquidity Provision.

What is it? How does it work?

Compared to traditionally centralized sports betting institutions, UBet is a fully decentralized platform. But what does that mean? One of the key differences lies in who is providing liquidity.

What is liquidity?

When a bettor places a wager on a traditional sportsbook, they are always betting against the bookie, who provides enough liquidity to guarantee payout–if the call is good. In doing so, the bookie seizes all of the profits that can be made from transaction fees and bad calls. This is the foundation of the old adage: “The house always wins.” The house always wins because the house provides all the liquidity in the traditional model of sports betting–not to mention their monopoly in setting the odds!

Become the house.

As it is with the traditional model of sports betting, there are profits to be made through liquidity provision. But instead of forfeiting these profits by default to a centralized entity, UBet will allow anyone to become a liquidity provider to earn passive yields on their staked capital. “How much?” you may ask. Liquidity providers will earn their fair portion of the reward pool consisting of bad wagers and a flat 2.5% transaction fee for all wagers excluding limit orders. In short, the more bettors there are, the more profit liquidity providers make.

Bettor vs. LP Ecosystem

UBet will bring forth an interesting dynamic between the bettors and liquidity providers. While having more bettors will increase the overall size of the pie, having more liquidity providers will split the pie into smaller pieces. This will result in a self-balancing ecosystem between the bettors and liquidity providers because when the pie gets large enough, the returns will be very attractive to liquidity providers. But when there aren’t enough bettors, liquidity providers may seek greener pastures for their USDC.

What now?

The UBet Sports team has been hard at work and we’re very excited to begin testing early versions of our platform. Get involved and get rewarded by signing up for the free beta tournaments here. No purchase necessary.

By participating in a beta tournament, you will help us validate UBet’s cutting-edge financial technology and make sure that the platform is both secure and functional for bettors and liquidity providers alike.

The beta tournaments will be held every two weeks so there are plenty of chances to win. You can find more details about the beta tournaments here. There is also a $10 USDC bounty for reported bugs so keep an eye out!

The future.

In time, UBet will bring value to both bettors and liquidity providers to create a fair and decentralized betting economy as opposed to an unfair centralized oligopoly.

UBettors will enjoy:

• Better odds.
• Instant payout.
• Lower transaction fees.
• Unlimited bet sizes.
• And more.

UBet’s liquidity providers will enjoy competitive yields on their staked USDC by leveraging the house edge for themselves.

At UBet Sports, we are super excited about the future of sports betting and decentralized finance. If you are excited as well, make sure to follow us on Twitter and say hello on our Discord. We’d love to hear from you!

Connect with us.

Twitter: https://twitter.com/UBet__Sports
Discord: https://discord.gg/B7brvUEAFG
LinkedIn: https://www.linkedin.com/company/ubetsports/
Medium: https://medium.com/@UBet.Sports