NEXUS Startup Competition Pitch - LEVR.bet - TOKEN2049 Singapore 2024

so lever. bet is our company we founded it uh with a team of sports betting quants and professional defi Traders with an aim to innovate into sports betting something new fresh and exciting for users that doesn't currently exist and we do this on the back of offering not only Superior odds but leverage to users which let them make more money on the same bet that they would traditionally make and so when we look at web 3 gamble fi we look at a bunch of challenges that have caused adoption in the space to not take hold in the way that you know we think it should have first and foremost above these is lack of transparency almost all web3 sports books right now operate a centralized exchange model which doesn't push trust into their uh user base they can do things like kyc erroneously uh just wins after they've been deemed a win uh back to a loss and just otherwise cause a lack of trust and everything in our mind should be on chain and fully provably Fair there's also low liquidity in the space and because of that that offers low uh low deployment for Capital into odds ranges without those odds changing which really causes a lack of users in the space there's also a lack of passive involvement because most of them are centralized exchange models there's not a lot of room for users to come in that are not Sports betters and to participate in the product and this causes a lack of user audience and downside izes the ability for Market into traditional Defi and there's are also most importantly a lack of innovation again most of the traditional uh or most of the web 3 Sports books right now operate in a traditional manner which is really just a port over from web 2 with crypto payment rails it's not Innovative and you can't compete with traditional casinos in that manner enter lever. not only do we run a fully transparent book that is completely on chain from liquidations to order book to the odd setting uh we also run passive earnings so users can stake into our vault or stake our token for Revenue potential which means defi users can come in and participate that don't actually Sports bet we also have pulled liquidity vaults solving the liquidity issue in our exchange we can offer thousands of dollars where others can offer tens or hundreds of dollars on the same Capital deployment mostly because we operate under the principles of an AM uh but you also pulled liquidity Vault and most importantly we have innovated where no one else has we are the first in not only web 3 but also in the world leverage sports book and what this means is that we can offer users better odds than every other sports book in existence because we operate on the Fe set of a perex not the Fe set of a sports book and so what is the opportunity here well in traditional gambling the revenue model is about $100 billion do a year for for above board and about twice that for uh elicit market and on the web 3 front and oh excuse me the that model is growing about 11% per year so the the market here is huge on top of that we look at the web 3 Market there's been over a 100,000 individual unique addresses that have participated in gamble fi over the last 18 months most of it in the last 12 months and they do not have a project they're Evangelical eyes to so there a rather large user base sitting there ready to adopt a platform that comes to them with something unique and Innovative and then when we look at capturing the market lever is set up exactly how it needs to be to capture this Market in totality we can offer better odds than almost any other book in existence consistently we can offer betters a more exciting experience and we can innovate where others can and so our business model is pretty simple we split half the revenue with our token stakers uh in to the Vault uh that provide usdc Capital to back the house portions of the of the product that is the technical counterparty to The Leverage positions the other 50% of Revenue goes to lever token stakers the Dow and our referral pool and so what does that mean what it really means is uh let's take an example we scheduled out an NBA season it's 1,230 games if we were offer three markets on those 1,30 games money line handicap and over under and we got 50% available liquidity usage just on that one sport on one season we would produce over 120% Vault Revenue uh Vault tvl Revenue right and that is one of the most powerful sources of income for stable coin depositors in Defi and so over the last uh over the last year we've deployed not only our initial beta test which was on uh Avalanche and now moving over to monad we had a thousand users through there we learned what we needed to adjust went back to the drawing board adjusted it we've now portioned ourselves perfectly to rock our go to market with our real beta test onto monad testet here hopefully happening in October we'll roll live into main net where our goal is to put liquidity into the vaults to put liquidity into the markets on the end-game market and then to push into a multi-chain expansion so our multi-chain expansion will be powered by layer zero using their relays we'll expand into salana uh other evm ecosystems try and capture as much gamble FY as possible but the real goal here is to take a web 3 product to retail in a way that doesn't feel like a web 3 product and so for us we look at how do we do that first we have to have the product fully functioning on its flywheels on the defi front so that we can bring those functioning flywheels to retail so if we can incentivize users to get in deposit liquidity into the vaults we can have good liquidity that user retail users can come and bet with on the front end of the product if we can incentivize users with lever token rewards to participate in our in-game orderbook exchange then when those retail users come to sell their positions into the market they'll be able to clear they'll be able to buy and the product will just work and for that we think the right way to bring a product to retail Market is to start in defi to start in traditional web 3 and then scale into retail by reducing the complexity of the project and increasing or excuse me introducing account abstraction uh and and payment rails that are simplified so that we can get to oneclick bets that's our ultimate goal is oneclick leverage bets now let's look at what this looks like in real life the loom video the video ah here we go so we're going to walk through making a bet pregame you can come over check the odds uh they convert into a token price between zero and a dollar so you see here 75 cent token price we'll hop up $100 we'll leverage it out we'll go through we'll make our bet we'll see the the liquidation constraints it's all on chain as you're seeing right now you'll pull through we'll go to uh our bet slip area where you can see your open bets currently you can see the bets that are pending in Market what you've been liquidated on what's coming up and then we'll go into the most EX exciting part the live game betting and so you can see here the odds are uh converted into a pricing chart thank you thank you it's uh time's up this is a very Cutthroat competition here so we're going to move straight to Q&A now for the judges please uh thanks uh yes so with the Vault model you have uh you know of course it's either the gamblers are up the vaults are down or the vaults are up like it's uh the P house to flow from one side to the other and in a traditional sports book uh if you face like a gambler that has Edge uh you know you'd reduce their size you'd manage that appropriately so that your book is intact uh yeah how do you manage that in like a decentralized kind of fashion here with the permissionless lp model so first we don't open a market as soon as the markets open IRL so we give them time to burn off and the smarts to essentially go in and adjust the line so where a normal Market would open 72 hours before the game starts we would open 24 hours before the game starts so we missed that initial sharp money that is going to damage our book then furthermore when the odds update we have a funding rate engine that kicks in if they update over a certain percentage it gets really strict it decays off over time so let's say the odds update and there's a 10% change in odds we want to make sure there's not going to be another odds update minutes after that and we're going to hit hit with some sharp money so those two things have really truncated the amount of damage that we can take and then just traditional balancing algorithms handle the rest of it how does the funding rate work exactly so it's a mixture of local skew as well as a funding rate that's implied when the odds are updated and it's the decay of that funding rate is based upon how large the difference between the current odd set and the new odd set is uh is so the bigger the difference in that odds movement the longer the Decay rate is on the funding rate okay and the funding's paid to the other side yeah the funding is paid to the other side so that essentially uh and this also happens with the local SK skew so essentially we never run out of liquidity on one side it just gets really expensive to place the purchase after about 75% of the liquidity has been used okay and and the is the Vault like automated or how does it yeah it's a it's an AM model Vault so think of it like a a glp okay but we call it MVP though obviously a lot of people like gambling uh it's very popular around the world but there are different kind of jurisdictions with different rules do you guys plan to do anything on the regulatory front or is it is completely on chain and you're trying to sidet that so initially the product will be restricted so no United States users no UK users we take a similar approach to poly Market with it but our ultimate goal is to scale up into retail and when we hit retail and we have a account abstraction and we're doing sign-ons through email or social we're not going to be able to skip targeting Americans or UK users and at that point we'll move to get a gaming license in kyc awesome thank you