What is decentralized blockchain sports betting?
A DEFI sportsbook is a market where people can trade contracts that pay based on the outcomes of future sports events. This may sound very much like sports betting. However, the difference between DEFI sports betting and traditional sports betting comes from the style of operations.
In traditional sports betting, the fixed odds are set by the bookmakers. Because the house takes the opposite side of the bets, the bookmakers control the market odds in order to minimize their risk of losing money. In contrast, the sports prediction market is a free market, in a sense that the odds are determined by algorithms and the protocol based on the market demands.
Here is where decentralization comes in. There is no entity that controls the betting odds, betting size, or even bans you when you are sharp. Once the prediction market event is set with a smart contract, it runs on its own by some predefined protocol.
This is what UBet is all about. Ubet is the Best crypto sports betting where bettors can freely bet without any restrictions and liquidity providers can earn passive yield.
How does UBet work?
UBet’s autonomous protocol provides betting odds and enables a permissionless and highly liquid market. There are two types of users in UBet, bettors and liquidity providers (LPs).
Bettors can simply trade their bets, where you can continuously buy and sell your bets at market odds. The transaction fee, which is also known as vig in traditional sports betting, is fixed at 2.5% before the game starts. Indeed, UBet encourages arbitrageurs to seek profit between the UBet exchange and any other betting platform to arrive at the best market price.
Liquidity providers (LPs) are the ones who fund a liquidity pool and facilitate trading. LPs deposit their capital in USDC to earn passive yields from transaction fees that bettors paid.
Overall, this creates a nice ecosystem between bettors and LPs, and benefits both!
We are super excited to share the decentralized sports prediction market and UBet with you. Of course, your feedback is always appreciated as we improve upon it. We will share more interesting content with sports betting, prediction markets, decentralized finance (DeFi), and, most importantly, UBet’s progress.