Bet Pool (BLP)

BLP is Betbit’s Liquidity Pool token, which is a collective pool of different crypto assets such as ETH, USDC, USDT etc. This liquidity pool was built with the intention of being one of the most attractive risk adjusted LPs in DeFi, with a stable risk curve by virtue of a positive house edge in our games.

Liquidity Module

BetBitX's liquidity Module follows GMX's GLP concept, where depositors deposit betting assets in exchange for BLP tokens at the prevailing BLP price.

• User Deposits USDC/USDT/ETH

• User mints BLP

• BLP price is determined by Value of Deposited Assets / Total Number Of BLP Tokens Minted

• BLP can be minted using either USDC, USDT or ETH (More to come in the future) and burnt to redeem any of the 3 assets.

As we incorporate a hybrid decentralised infrastrucutre to cater to both onchain and web2 games, BLP deposits and withdrawals happen on a 1 hour delayed basis to protect the platform and users.

Quoted BLP price and fees at point of transaction will be close to actual values but are estimates of transacted price and fees after the 1 hour delay

The Utility Of BLP

BLP liquidity providers back the winnings earned by the users and are also the beneficiaries of users' losses, essentially acting as the counter party to BetBitX players.

In other words, the Bet Pool increases in value when players lose and decreases in value when players win.

• Game winners that net a profit from the game draw their winnings from the Bet Pool.

• Game losers send the amount they bet to the Bet Pool.

• On a net basis, depositors into the Bet Pool will win in the long run because of our games' house edge.

Example:

• Assuming the price of BLP = $10, and the pool contains $10,000. This implies the existence of 1,000 BLP tokens

• A depositor deposits $10,000 worth of $USDC into the pool in exchange for $10,000 / $10 = 1000 BLP tokens

• The pool now contains $20,000 with 2,000 BLP tokens in circulation

• A player bets and loses $10,000 to the pool, and the pool now contains $30,000

• The price of BLP = Total amount in the pool / total number of BLP = $30,000 / 2,000 = $15

• BLP holders enjoys 50% gain in with respect to the price of BLP

The Positive Expected Value Play

The strength of our platform lies in the mathematics of our house edge, a feature inherent in all gambling platforms.

Some players will win big, others will win small, but statistically, over time, players will lose more money than they win due to the positive house edge on games. This translates into positive returns for BLP holders.