Project Insight: GambleFi - Zero-Loss Betting Protocol on Cronos

The GambleFi ecosystem introduces new concepts like blockchain based zero-loss and leverage betting which are currently in the beta phase.

By
Abhinav Tewari
on
May 17, 2022
Category:
DeFi

Introducing GambleFi

GambleFi is an innovative financial ecosystem, based on a currency managed by a Decentralized Autonomous Organization (DAO).

The project was designed to merge the world of online gambling with the crypto ecosystem through various innovative gamification systems, including the first Zero Loss Betting system allowing users to bet on sports events with no losses, Treasury Revenue Redistribution, Vesting Reduction Non-Fungible Token (NFT) Boosters for Bonds, Leveraged Betting, and a groundbreaking Gambling as a Service (GaS) system. BETIFY is the ecosystem’s utility token. It is collateralized by various assets and is held in GambleFi’s treasury, ensuring that the base value does not fall below a certain minimum. 

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The overall objective of the protocol is to ultimately protect user funds and create an ecosystem that can exclusively operate reliably through the blockchain and independent of traditional financial mechanisms. 

BETIFY & BETSLIP

BETIFY is a rebasing currency backed by other digital currencies. This ensures that each token is backed by the protocol’s liquidity such that each BETIFY is backed by 1 USDC, and not pegged to it as the treasury backs every BETIFY, the protocol will buyback and burn BETIFY if it trades below 1 USDC. This creates a positive price pressure to push the BETIFY price back up to 1 USDC. BETIFY can potentially trade above 1 USDC because there is no upper limit imposed by the protocol. 

The treasury, liquidity, bond mechanism, and staking rewards are intended to regulate supply expansion. Earnings are generated from bond sales, which are used to mint BETIFY which is distributed to stakers. Thanks to this system the protocol can accumulate its own liquidity. GambleFI intends for BETIFY to function as a currency that is able to hold its purchasing power regardless of market volatility.

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The token was launched in February this year through a private sale, and a fair launch on MM Finance's Launchpad. 20,000 tokens were allocated for the private sale, distributed between trusted capital investors. 100,000 BETIFY tokens were allocated for the fair launch at a price of $10 per token. 

BETSLIP is GameFi’s recipient token, it is offered to users upon staking their BETIFY token on the protocol at 1:1 ratio. The BETSLIP tokens are auto-compounding and the tokens in the user’s wallet will increase in every epoch (eight hours) based on the prevailing Annual Percentage Yield (APY). WBETSLIP is the token obtained by wrapping the receipt token, BETSLIP. It represents direct access to the treasury redistribution system, allowing investors to receive dividends based on the treasury's performance on a monthly basis. A part of the treasury's monthly revenue will be offered as dividends to BETIFY stakers, through the WBETSLIP wrapping mechanism. 

Rebasing DAO

GambleFi, a DAO governed protocol, is the first of its kind Rebasing DAO on Cronos. It was inspired by protocols such as Olympus DAO on Ethereum and Wonderland on Avalanche, further improving on the long-term sustainability. Diving deeper into the mechanics of the protocol, we need to understand the Rebasing DAO system. 

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Rebasing refers to the process of algorithmically adjusting the circulating capacity of an asset. It involves reducing the supply by burning tokens or increasing supply by minting new tokens. This is done in order to adjust the token price, without affecting the value of anyone's share of coins. A key objective of rebasing DAOs is the creation of a decentralized investment fund. Most Decentralized Finance (DeFi) protocols including some really popular ones depend on user acquisition for generating liquidity which works well for liquidity distribution; however, it is not sustainable in the long-term because of inadequate retention mechanisms. 

When it comes to rewards, most liquidity providers tend to gravitate towards protocols with higher returns. In order for the protocol to offer higher returns to investors, protocols will generally need to increase minting rates, creating a steady flow of inflation for their assets–detrimental to long-term stability, The rebasing DAO system solves this issue by owning most of the protocol’s liquidity directly in its treasury, through a robust staking and bonding system. The system presents itself as an evolution of yield farming. These DAOs can potentially generate higher sustainable APYs compared to yield farming. 

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The rewards distribution program is driven by two mechanisms such as staking and bonding. Staking is the protocol’s main value accrual strategy. Users can stake their BETIFY tokens to earn rebase rewards, which are generated directly from bond sales, and can vary based on the number of BETIFY staked in the protocol and reward rate set in place. As mentioned earlier, users receive BETSLIP tokens upon staking BETIFY, BETSLIP allows users to have an additional revenue stream, through the Treasury Revenue Redistribution System.

Upon unstaking the recipient token, users receive a proportionate (1:1) amount of BETIFY tokens. 

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Bonding is the action of selling assets to GambleFi in return for discounted BETIFY tokens, that will have an appropriate vesting period depending on the discount offered.

Staking in conjunction with bonding is critical for reward generation and liquidity locking. Staking makes BETIFY tokens scarce by locking them up, while bonding aggregates value into the GambleFi Treasury. The benefits of the treasury accumulation are as follows:

  • More number of BETIFY tokens can be minted.
  • Investors receive higher APYs.
  • Treasury value is increasingly protected.

Gamification Mechanisms 

Zero-Loss Betting System

GambleFi is the first to offer a zero-loss gaming system with a total return on investment for lost bets. Users will be able to wager on numerous sporting events and eSports, and the victors will, of course, receive awards. However, unlike traditional gambling systems, losers on GambleFi never lose their money.

In actuality, the user's investment is accumulated and staked for a week in the most profitable staking pool accessible. At the end of the staking period, the winners will receive their winnings, while the losers will reinvest their initial investment, resulting in a zero-loss betting system. The betting mechanism is also closely tied to the DAO, as 10% of the prize pool is returned to the protocol treasury, raising the inherent value of BETIFY. 

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CronosSports

CronosSports is GameFi’s decentralized betting platform on Cronos. It was designed to provide the accessibility and the usability of a traditional online-gaming platform with an intuitive UI, but operating on a decentralized network. It aims to revolutionize the sports betting industry by utilizing the zero-loss betting mechanism.

The platform operates on a Pool Together basis, where all of the funds that are bet by users are sent to an external yield farm, staking pool or vault to generate yield for the prize pot of the bet. This enables the protocol to offer several incentives that would otherwise not be available in the traditional finance ecosystem. 

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The platform will offer users the opportunity to bet on MMA, Football (soccer), eSports such as Counter Strike Go and League of Legends, in addition to American Football, Basketball. More sports can be added in the future based on demand from users. The platform was betatested recently and currently the pre-release version is operational. GambleFi plans to partner with athletes from various sporting categories to promote CronosSports. 

Betting Governance

GambleFi is built on a community-driven ethos. This also applies to the betting system, where users will be able to choose new featured sporting events on the platform or upcoming games from their favorite teams. The protocol will offer the technology and the infrastructure, while the community will be responsible for picking the most requested events.

Smart Treasury

Some of the key long-term revenue streams for the Treasury are as follows:

  • Betting Fees: 10% of the fees generated by the Zero-Loss Betting feature pot are directly sent back to the treasury.
  • AMM Fees: 0.04% of the AMM trading fees will be directly redirected back to the protocol treasury.
  • LP Fees and Bonds: Liquidity Pool fees as well as Bond sales will contribute to the treasury immensely.
  • Unboxing Fees: 90% of the DAI used to open mystery boxes is sent directly to the treasury.
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Booster Boxes

GambleFi offers a brand new innovative gamification feature called the Booster Boxes. Booster Boxes offer users NFT Boosters that can optimize bond purchase activities on the protocol. Booster Boxes will be released at a rate of 50 per rebase, every 8 hours. Therefore their daily emission will be limited to 150 Booster Boxes. The Booster Boxes can be opened using the BETIFY and the DAI token. In case of BETIFY, 100% of the tokens used for opening the box are burnt, whereas in case of DAI, 90% tokens are sent to the treasury and remaining 10% are utilized for team funding. 

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NFT Boosters are NFTs that users can receive by opening Booster Boxes. They are utility NFTs that offer investors discounts on the vesting period of bonds purchased through the GambleFi protocol. NFT boosters can be a key success factor as they can potentially speed up the absorption of bonds and might keep users invested even post the vesting period.

Gaming as a Service

GambleFi plans to launch the GAAS (Gambling as a Service) feature in the fourth quarter of 2022. It will allow users and influencers to create their own betting events for a wide range of activities such as sports, cultural, digital trends, or others that can attract a substantial flow of players. This will lead to even greater revenue generation for the treasury while expanding the ecosystem to potentially mainstream levels. 

Team Background and Funding

GambleFi has a team comprising 18 members, with extensive previous experience in various business fields such as cryptocurrency, venture capital, startups and consultancy.

Recent Developments

As with any platform looking to penetrate and compete with the mainstream betting market, GambleFi needs to have an aggressive marketing strategy and be open to partnerships for rapid expansion through the utilization of the Cronos Chain’s potential. 

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GambleFi announced partnerships with the following protocols on its medium blog:

  • MM Finance for the launch of the BETIFY token.
  • CroKing for the utilization of its marketplace and staking platforms.
  • CroSea for mutual benefits through collaborations such as hosting AMAs, Hackathons, sharing technical data, etc.

Concluding Thoughts

Even though the potential of sports betting is immense and could easily run into billions of dollars, it is important to note that GambleFi is still in the nascent stages of development and is currently in the beta stage. BETIFY, the platform’s native token, trades at $0.54 at the time of writing, with a market capitalization of just over $218k.

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As the betting ecosystem expands, GambleFi should be able to play to its strengths and provide users with a betting experience that can potentially rival and disrupt the mainstream sports betting market, especially since it is a zero-loss gambling system that returns lost bets to the users. 

Find more about GambeFi here:

Website | Twitter | Medium | Documentation | Whitepaper | Telegram | Discord

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Abhinav Tewari

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