What is BetDEX? What are the advantages of BetDEX? How to bet on BetDEX? How to profit on BetDEX?
What is BetDEX?
BetDEX is a sports betting exchange built on the Solana blockchain. This means it uses the Solana blockchain to organise and control the system, rather than servers like a traditional website. A sports betting exchange is a platform which matches bet orders from different users when they are on opposite sides of a bet. Initial orders are usually put up by market makers who manage their orders algorithmically. They provide the offers for other users to bet against.
BetDEX was founded by a team which has lots of experience in the betting industry, including with FanDuel and BETDAQ exchange. BetDEX raised $21 million in November 2021.
All of the information relating to BetDEX markets can be found on the Solana blockchain through the Monaco Protocol. Monaco Protocol is the collection of on-chain programs which controls the BetDEX backend. Technically BetDEX is just a user interface (UI) with which people can easily access the Monaco Protocol. Since all the information is all stored on the blockchain, anyone can easily access it and verify it.
The cost of storing this data on the Solana blockchain is called rent. Programs can avoid paying rent by having a SOL value greater than the rent exemption amount which increases as the amount of data in the program increases. Since all data about bets and the event such as teams involved, start time, market type, bet type, stake, and odds are stored on the blockchain, rent exemption needed to place a bet is higher than the normal transaction fees.
What are the advantages of BetDEX?
BetDEX has many advantages over traditional exchanges. For now, they have 0% commission/fees. This means the odds you see are the odds you get once the bet is settled, which isn’t always the case for exchanges with fees. BetDEX is also non-custodial — this means you never deposit funds into their system. Your funds stay within your wallet except when you place a bet. There are also no withdrawals — winnings are sent straight to your wallet once the market is settled. Since the whole system is on the Solana blockchain, you can see and verify everything about it. BetDEX also say that they welcome winners and will not ban users.
Anyone is free to be a market maker on BetDEX, no special permission or access is required. This means you can be the bookmaker and fill the markets with liquidity, aiming to create even risk on all outcomes so you profit no matter what.
How do you use BetDEX?
While Monaco Protocol is built on the Solana blockchain, the BetDEX UI is licensed by the Isle of Man Gambling Supervision Commission. To access the liquidity and place bets on Monaco Protocol, you must reside in the countries allowed by this licence, and must submit images of your identification documents via the BetDEX website. Once you have passed the KYC verification, you can bet via the BetDEX UI.
Alternatively, you can place bets directly on the Monaco Protocol using their JavaScript SDK. This allows you to bypass the KYC process and read and write information directly to the blockchain using your code.
A third option is to use the Purebet website. Purebet is a protocol which fetches the liquidity from many on-chain sports betting venues, including BetDEX, and displays them on the one UI. When you bet at Purebet, the bet is automatically placed at the bet odds for you. This means that if BetDEX have the best odds, Purebet will place your order at BetDEX, without you having to pass the KYC process. If another venue has better odds than BetDEX, Purebet will bet there for you, even if it uses a different currency or is on a different blockchain. Purebet even splits your order across venues if that gives the best overall execution for you.
How do you profit on BetDEX?
There are many ways to profit on BetDEX. Since there are currently 0% fees and free access to the SDK, you could profit by creating a market making algorithm which provides liquidity for all sides of an event and aims to profit by creating a balanced book where you win no matter the outcome. You could also look for odds on BetDEX which are better than at other venues. After finding these odds, you could bet on the side which is the most value, or use it as an arbitrage opportunity — where you bet on both sides of an event and win no matter the outcome. Purebet will soon release a tool that allows users to take advantage of these situations directly on the Purebet exchange.
This is the first in our series of overviews of protocols integrated into Purebet.
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