From: thepipeline_xyz
Lever.BET is a platform aiming to amplify sports betting with leverage, introducing a new wave of verifiable credit in the industry [02:26:24]. The company identifies a significant need for innovation in the sports betting sector, particularly within Web3 [02:27:28].
Current Problems in Sports Betting
Traditional and existing crypto-based sports betting platforms face several issues:
- Lack of Transparency The most popular products often function as opaque crypto payment rails on top of standardized casino SDKs, which can be malicious [02:26:51].
- Low Liquidity It is often impossible to place large bets, such as a $10,000 bet, due to insufficient liquidity [02:27:04].
- Lack of User Participation There are limited options for users who wish to participate without directly engaging in betting or casino activities [02:27:15].
- Severe Lack of Innovation Many current Web3 solutions are merely “copy and paste” versions of Web2 casinos, lacking genuine innovation [02:27:25].
Lever.BET’s Solutions
Lever.BET addresses these challenges by offering:
- Full Transparency All operations, including liquidations and odds, are entirely on-chain, preventing manipulation of payouts or bets [02:27:41].
- Passive Earnings Users can participate and earn passively without directly placing bets [02:27:58].
- Pooled Liquidity Adopting models similar to GMX or HMX, the platform aims to provide massive liquidity for sports betting [02:28:08].
- Leverage Flywheels The system functions on leverage flywheels, enabling superior odds, payouts, and functionality [02:28:22]. This represents a “true zero to one innovation” for the sports betting space, both in Web3 and generally [02:28:28].
- Superior Odds: By making money on the borrow rate instead of lines (vig), Lever.BET can remove the “Vig” from incoming lines, offering superior odds compared to other sportsbooks [02:36:09].
Market Opportunity and Target Audience
The market for decentralized gambling (GambleFi) is substantial, with over 100,000 unique wallet addresses interacting with it on EVM chains in the last 12 months [02:28:44]. These users frequently move between products due to a lack of sticky innovation [02:28:55].
The global sports betting market is valued at over 100 billion in regulated revenue annually, with more than twice that in the illicit market [02:29:25]. Lever.BET aims to be the sole market participant to capture this market at scale [02:29:46].
The initial target audience is Web3 sports bettors on Monad, leveraging its technological advantages for a smooth product experience [02:30:04]. The strategy includes:
- Building community during the initial beta test on Monad testnet [02:30:08].
- Transitioning to cash bets on mainnet [02:30:14].
- Abstracting blockchain components to provide a clean UI/UX and payment rails, targeting a retail-focused Web2 audience [02:30:17].
- Attacking traditional sportsbooks and casinos through partnerships [02:30:29].
How it Works
Users can choose a bet type, place leverage and collateral value, monitor positions live during the game, and either win or lose [02:30:41]. For those not wanting to bet, liquidity can be added to earn profit with minimal risk [02:31:00].
Leverage and Liquidation Mechanism
Leverage is managed by tokenizing the bet. For example, a 5x leverage on a 50-cent token means 10 cents backs the position [02:33:41]. Live odds are monitored, and if the theoretical collateral drops below a certain point (e.g., 40 cents), the position is liquidated [02:33:51]. Liquidation checks prevent bad debt by taking the underlying collateral and removing the ability for users to sell the tokens [02:34:30]. Odds are aggregated from top casinos, similar to how GMX aggregates prices from exchanges like Bybit, OKX, and Binance [02:34:54].
Liquidity Provision
Lever.BET aims to offer one of the most profitable stablecoin vaults [02:37:07]. Users deposit USDT into the vault to back leveraged positions, receiving 50% of all profitability [02:37:24]. This model is akin to a GLP vault for GMX, offering minimal downside risk for liquidity providers [02:37:34]. A caveat is a minimum lock-up period (around 3 weeks) to spread risk and protect other vault users [02:37:41].
Traction and Future Roadmap
Lever.BET has a fully functional MVP offering leverage, ready to deploy on Monad testnet upon its launch, and then mainnet for cash bets [02:31:15]. After establishing TVL and order book activity on mainnet, expansion across Web3 will occur via LayerZero relays, funneling users back to Monad [02:31:47]. The final step involves abstracting blockchain components to target the retail market with a fully functional product [02:31:55].
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