Onchain Sports Betting using UBET Automated Market Maker
This addresses the need for transparent and efficient betting platforms for users seeking decentralized alternatives, though it appears incremental as it builds on existing AMM concepts with domain-specific adaptations.
The paper tackled the problem of inefficient liquidity provision and unfair odds in decentralized sports betting by introducing the UBET Automated Market Maker (UAMM), which uses smart contracts and algorithms to price sports odds fairly, resulting in enhanced liquidity, decentralized pricing, and positive experimental outcomes.
The paper underscores how decentralization in sports betting addresses the drawbacks of traditional centralized platforms, ensuring transparency, security, and lower fees. Non-custodial solutions empower bettors with ownership of funds, bypassing geographical restrictions. Decentralized platforms enhance security, privacy, and democratic decision-making. However, decentralized sports betting necessitates automated market makers (AMMs) for efficient liquidity provision. Existing AMMs like Uniswap lack alignment with fair odds, creating risks for liquidity providers. To mitigate this, the paper introduces UBET AMM (UAMM), utilizing smart contracts and algorithms to price sports odds fairly. It establishes an on-chain betting framework, detailing market creation, UAMM application, collateral liquidity pools, and experiments that exhibit positive outcomes. UAMM enhances decentralized sports betting by ensuring liquidity, decentralized pricing, and global accessibility, promoting trustless and efficient betting.