The smart multi-asset liquidity pool of the WINR Protocol is designed to act similarly to a centralized casino bankroll, with the ability to have multiple assets through an index composition.
JustBet is built on the revolutionary WINR Protocol, an infrastructure to provide a single point of liquidity and incentives to the betting platforms built on-chain. The protocol JustBet deploys is called Incentivized Gaming Liquidity Protocol. Head over to the WINR Protocol docs for more information. Below is a simple walkthrough of how WINR Protocol contracts work on the JustBet platform.
The liquidity contract on the WINR Protocol is a multi-asset index pool comprised of wBTC, wETH, and DAI. Liquidity providers (LPs) can buy/mint WLP using any of the tokens in the index pool. The price of WLP is calculated as follows
Every time a liquidity provider (LP) deposits any of these tokens into the pool, the contribution weight of each LP is recalculated to determine how the losses of gamblers will be distributed among the LPs. Participants will be minted in WLP tokens in exchange for their stake in the bankroll to prove their participation. They will be able to exit the pool with any token they want, regardless of which token they contributed, in proportion to their share in the bankroll. This new model allows for greater flexibility for liquidity providers, as they can now participate with the token of their choice and withdraw their share of the bankroll in any of the accepted tokens proportionate to their contribution weight. WLP, or Winr Liquidity Provider, is the token that represents a user's participation in the liquidity pool of the WINR Protocol. The WLP token is minted in exchange for a user's stake in the pool and serves as proof of their participation in the platform. The WINR Liquidity Provider (WLP) token is calculated by evaluating the underlying assets, multiplying them by their current market prices, and dividing them by the total supply of WLP tokens.
Since users can play games on JustBet using any of the three accepted tokens (Bitcoin, wETH, and DAI), these tokens will be accumulated in the bankroll. The ratios of assets in the bankroll will change dynamically based on the tokens that are being withdrawn. For instance, if the current and desired ratios are 45% Bitcoin, 35% wETH, and 20% DAI, and a user LPer wants to withdraw an amount that would disrupt this balance, they would need to pay an additional amount to maintain the balance in the bankroll. The WLP index pool is a Balancer Smart Pool designed to maintain a certain balance of assets over time. This means that the pool is programmed to ensure that a specific ratio of assets is always maintained, and the WLP token's value is tied to these assets' value. Users can mint and redeem WLP tokens using any asset in the index. The value of WLP is determined by dividing the total value of assets in the index by the supply of WLP tokens in circulation. Holders of WLP tokens share in player losses on the platform. When players lose on the platform, a portion of these losses is distributed among WLP holders. The platform also has a fee structure based on the effect of the balance of assets in the index, with lower fees for tokens that the pool has less of. This fee structure applies to minting, burning, or placing bets on the platform. Overall, WLP tokens provide a way for users to participate in the liquidity pool and share in the platform's revenue while also helping maintain a balanced asset index for betting.
On JustBet, a percentage of all the bets is allocated to the Staking Pool. This percentage is determined based on the daily change rate of the amount in the bankroll and is always between 0.1% and 0.5%. The gamblers' losses after the staking pool’s bribe are always added to the bankroll. This system helps to ensure the stability of the WINR Staking pool and provides incentives to the staking program participants.
The vWINR multiplier changes between 0.5 and 2 and is inversely proportional to the daily volume. As the volume on JustBet increases, the amount of vWINR earned by players will decrease. This system is designed to maintain the stability and health of the JustBet platform by considering the house edge and ensuring that the volume of games played remains high. If the players' volume is lower than on previous days, as the volume on JustBet increases, the amount of vWINR earned will decrease. This system is designed to maintain the stability and sustainability of the platform by considering the house edge and ensuring the volume of the games.
On JustBet, the maximum bet amount for each game is carefully calculated to ensure that the maximum possible win on a single bet does not exceed 2% of the total value locked in the liquidity pool. This helps to protect liquidity providers (LPs) and maintain the long-term sustainability of the platform for all players. For instance, if the total value locked in the pool is $50,000, a player's maximum win on a single bet would be $1,000. This 2% limitation helps ensure the platform's stability and security for all parties involved.
Liquidity providers (LPs) play a crucial role in the JustBet platform by providing the necessary liquidity to ensure smooth and seamless gameplay for players. In return for their contributions, LPs can earn a share of the profits earned by the platform, as explained by the formula above. LPs also pay a small percentage of their profits to the Staking Pool to incentivize players to make more bets. This percentage is determined by the WINR Protocol decentralized autonomous organization (DAO) and is used to reward players actively participating in the staking process.
Participating in the Staking Pool allows players to earn WINR tokens and ETH rewards, which can be used to unlock additional features on the JustBet platform or traded on external exchanges. This helps to create a circle of engagement where LPs provide liquidity, players bet and earn rewards, and the platform benefits from increased activity. Ultimately, this benefits everyone involved and helps ensure the JustBet platform's long-term sustainability.