🌊Liquidity Provision

(Unavailable yet, is plan to release Q3 2024)

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 3% transaction fee for all wagers. 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.