Onchain Sports Betting using UBET Automated Market Maker

TL;DR

This paper presents UBET AMM, a novel on-chain automated market maker designed for decentralized sports betting, ensuring fair odds, liquidity, and global accessibility through smart contracts and innovative algorithms.

Contribution

Introduction of UBET AMM, a new AMM tailored for decentralized sports betting that aligns odds fairly and improves liquidity management.

Findings

UAMM provides fair odds pricing on-chain.

Experiments show positive liquidity and efficiency outcomes.

UAMM enhances trustless, decentralized sports betting.

Abstract

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.