Is GambleFi thriving again because of Layer2?

雨中狂睡

2023-03-24 22:00

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Original title: Is GambleFi Thriving Again because of Layer2?

原文作者：雨中狂睡，深潮 TechFlow

When Ethereum is no longer weighed down by performance and efficiency, which areas are most likely to explode?

GambleFi may be a relatively niche answer with a big narrative.

The main driver of GambleFi's growth is a common concern in the traditional world about casinos -- black box, or "cheating." Gamblers worry that their counterparties or casinos will cheat to gain unfair benefits for them, and deploying blockchain can better solve this problem.

The transparency, verifiability and permission-free nature of GambleFi, powered by blockchain technology, will make Gamblefi a more attractive Internet casino facility, while ensuring fairness and privacy.

Once upon a time, I was impressed by the thriving gambling ecosystem on EOS. But the gambling Dapp on EOS is very different from today's GambleFi narrative:

Development potential:Although gambling. Dapps are built on top of EOS, which, despite its low processing costs, is a cumbersome operating experience. In the end, history has given us an answer -- with the demise of EOS, the applications on it have been lost to the history of blockchain. Ethereum Layer2, on the other hand, has a much more fertile soil, a much larger user base and a much better interactive experience.

Real revenue:Another great thing about GambleFi is that it follows the trend towards a real revenue narrative. This introduced GambleFi to a new and incremental audience: investors. In addition to gamblers participating in the protocol, investors who are bullish on GambleFi can also gain dividends by purchasing protocol tokens and pledging protocol tokens, which is more scalable token economics than gambling Dapps on EOS.

Let's take a look at some of the GambleFi protocols built on Ethereum's Layer2 Arbitrum.

Arcadeum $ARC

Arcadeum is an Arbitrum-deployed GambleFi that offers gamblers seven traditional casino applications including roulette, dice, rock-paper-scissors and more. QRNG uses random number generation to give the final result. Before gambling, the user can clearly see the odds geometry. Arcadeum's gambling fairness is supported by quantum Random number generation (QRNG).

Arcadeum's liquidity is achieved by the user providing the USDT. Although similar to the GLP model, Arcadeum's Alps are completely free of fluctuation (ALP deposit/withdrawal fee is 1%). Gamblers gamble, winners win, Alps lose; Losers lose, Alps gain.

$ARC is the original token of Arcadeum. Based on $ARC, Arcadeum extends three other token forms:

$sARC:Staked ARC allows users to capture 15% of betting fee income and ALP deposit/withdrawal fee income by pledging ARC.

$xARC:For Burnt ARC, the user can exchange the ARC directly 1:1 for xARC, the underlying asset ARC is destroyed, and the pledged xARC can earn 70% of the betting fee income and ALP deposit/withdrawal fee income.

$esARC:Escrowed ARC, ARC Staker will receive esARC, pledged esARC will receive 15% of the betting fee income and ALP deposit/withdrawal fee income;

JustBet $WINR

Developed by WINR Labs, JustBet is an Arbitrum-deployed GambleFi that provides users with a fast and tamper-proof gaming experience. JustBet's services are similar to Arcadeum's, but more varied. In the future, WINR Labs will launch SDKS for gambling-related products to provide product and liquidity support for all gaming agreements that want to build casino products. JustBet's gambling fairness is supported by Verifiable Random Functions (VRF) and the Prophetic Machine service SupraOracles.

JustBet liquidity is achieved by users providing WTBC (15%), WETH (35%) and DAI (50%). WLP will lose money on both market volatility and gambler wins, and will be charged a swap fee of 0.15% to 0.75% to buy and sell WLP. The WLP income comes from the loss of the gambler, the $vWINR emission, 25% of the commission income (gamblers will pay 0.02%-0.1% commission for each bet) and 25% of the swap fee.

$WINR is the native token of JustBet. Users can pledge $WINR to get a share of the agreed revenue. Alternatively, users can convert $WINR to $vWINR. The pledger will receive fee income sharing and swap cost sharing, but the weight of $vWINR is twice that of $WINR. The proceeds will go to the mortgagee in the form of WLP. Similar to GRAIL and xGRAIL, the original tokens of Camelot, vWINR has a maximum vesting period of 6 months (1:1) and a minimum vesting period of 15 days (1:0.5). Part of the agreed revenue will be repurchased and destroyed in the market $WINR.

ArbiRoul $ROUL

ArbiRoul is an Arbitrum based GambleFi deployment. It differs significantly from the first two GambleFIs in that it offers a richer range of gambling services, such as traditional gambling services, sporting events, casual games and customizable games for gamblers of all levels. This has greatly increased the user audience.

At the same time, unlike the two casino agreements above, ArbiRoul's liquidity is provided by SushiSwap's ROUL/ETH, after adding liquidity, the user will receive RLP (which will be charged a 2% fee). In addition to the DEX transaction fee income, users can also pledge RLP in the casino, providing liquidity and revenue sharing for gamblers. The benefit is that ArbiRoul provides more revenue to ROUL/ETH LP providers while also increasing the on-chain liquidity of $ROUL. And $ROUL is also the medium through which gamblers bet on ArbiRoul.

Another notable innovation is the publication by ArbiRoul of an NFT collection, High Rouler NFT. The High Rouler NFT Holder will receive rights such as pledge privilege, 11% distribution of platform revenue and DAO governance interest.

Finally

We can see that from the perspective of the development of casino agreement, the development direction of decentralized casino based on blockchain technology mainly focuses on two aspects:

Casino serviceGambleFi's product competitiveness lies in the services it provides to its users. Each casino has a different focus, with some focusing on esports, while others focus on traditional casino business. In order to attract more users, GambleFi will continue to expand its gambling products and services to meet the needs of different users.

User loyalty: The rich expansion of token economics has introduced GambleFi to more incremental users, while attracting users to pledge tokens and participate in the revenue sharing of the agreement. At the same time, more loyal users can get a higher revenue weight;

Taking the three agreements mentioned above as an example, although each agreement has a different emphasis on token economics, they are generally designed to attract liquidity through income, and provide income dividends for the token /NFT pledger. The pledger with locked tokens can gain higher income weight, so as to attract more investors to join the GambleFi ecosystem. The proceeds from the agreement will be used for token repurchases and destruction, which will increase the price of the token by reducing the supply, which in turn will attract more users to the agreement.

This is a potential flywheel.

So, with the logic of the protocol in place, could GambleFi be revived by the rise of Layer2?

From the current perspective, in essence, the rise of Layer2 provides a high-quality development soil for GambleFi, and the innovation of DeFi protocol and the reform of tokenomics triggered by Layer2 also provide GambleFi protocols with a good idea of constructing tokenomics. While it thrives on the chain, GambleFi may have a new opportunity.