Web3 Bets

In traditional betting channels, players bet against the house (bookmakers and betting exchanges). But in the Web3 Bets Ecosystem, players bet against other players transparently on the blockchain. The implication is that the “bank can never be broken”, that is, there can never be a situation where a player wins and does not get his full reward.

PARI BET GAMES

Pari Bet Games is a parimutuel betting system built as decentralized applications powered by smart contracts. A player bets on a specific outcome out of two or more outcomes. All bets of the same side are collected together and placed as a pool. At the end of the event, if the outcome is determined, all the staked values are distributed to the players in the winning pool on a pro rata basis. In addition, the vig is deducted only from players’ win (total win minus total stake) and not on the total stake of all players, this makes the ecosystem better than traditional betting channels.

Algebraic summary

In an event with a set of n possible single-winner outcomes, with wagers W1, W2, W3,  ..., Wn the total pool of money on the event is

WT =  W1 + W2 + W3 + … + Wn

After the ecosystem deducts the vig of r from the pool, the amount remaining to be distributed between the successful players for a successful outcome m is 

WR = (WT – Wm) * (1 − r) 

Those who bet on the successful outcome m will receive a payout of WR / Wm for every dollar they bet on it. Wm is the wager which the outcome favors.

When there are k possible winners the total amount to be distributed WR is first divided into k equal shares. If m is one of the k winners, those who bet on outcome m will receive a payout of (WR / k) / Wm for every dollar they bet on it.

Event Owners

Event owners create events and also enter into the blockchain the outcome of the events. For V1 of the Pari Bet Games, only the dev will be event owners, but in V2 any player can be an event owner, to make the pool creating and outcome determination process more decentralized. In the V2, any player can create an event, players that trust the event owner (based on the event owner’s ratings) can play bets in the event.

FIXED-ODDS GAMES

Fixed-Odds Games is a blend of fixed-odds and exchange betting, in which players wagers against odds offered by other players and not by a bookmaker. Any player can lay a bet (that is back an event not to happen), and set the odds (decimal odds), and any other player can bet against it.

Algebraic summary

When players lay a bet with odds x, they must stake a value. If the outcome is in their favor, they make 1 / (x – 1) of their stake; if the outcome is against their bet, they lose their stake. When players bets against an offer of odds x, they must also stake a value. They make x multiplied by their stake if the outcome is in their favor, and they lose their stake if the outcome is against their bet.