Onchain Sports Betting using UBET Automated Market Maker
Daniel Jiwoong Im Alexander Kondratskiy Vincent Harvey Hsuan-Wei Fu
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.