Delphi Digital, Arrington Capital, Gnosis and Flow Ventures invest $3.5 million in Azuro

The decentralized betting protocol receives investments from institutions

Azuro, a decentralized betting protocol, raised $3.5 million in a seed round from Gnosis, Flow Ventures, Polymorphic Capital, Ethereal Ventures, Delhi Digital, Arrington Capital, and Meta Cartel Ventures. The investment comes in light of increased trading in predictive instruments such as derivatives on ByBit, Binance and FTX. Azuro is a decentralized betting protocol that uses smart contracts to provide an innovative liquidity sourcing and distribution solution, which uses pooled liquidity to move prediction markets, similar to pooled liquidity. commun has grown lending protocols like Aave or Compound and DEXs like Uniswap. Therefore, as betting becomes more transparent and trustworthy, the breadth of betting events, markets and user experience remains unmatched.

The DAO will oversee the development of the Paris Protocol, its ecosystem economy, treasury administration and dispute resolution, among others. Decentralizing the betting industry and its administration can create a fairer atmosphere, removing the well-deserved stigma that betting holds in countries and communities.

Understanding peer-to-peer betting

Previously, the peer-to-peer architecture of prediction markets prevented efficient liquidity allocation. Liquidity providers must manually initiate markets, set quotes, and seed liquidity for each market they create on prediction markets. Liquidity is therefore market-specific, implying that the LP bears the betting risk associated with that betting market. This is all due to the huge lift that LPs are required to provide, and as a result, there is little liquidity and therefore little betting. Additionally, prediction markets are ineffective for bets with three or more outcomes. Most people are stuck with YES/NO markets, which are woefully inadequate, especially in sports. Another example of a lack of product depth is an “accumulator”, one of the most common bets (and the most popular among casual players). Bettors who place many bets on the same slip will achieve a significantly higher potential payout if all of their bets are successful.

Instead of using various event- and market-specific pools, core liquidity is provided through a single pool. Liquidity providers are not required to create markets manually and are not subject to the risk particular to betting markets. Instead, the risk is dispersed across all protocol betting markets, greatly reducing the risk to LPs. For LPs, the procedure is standard DeFi – no human effort is required and no special knowledge is needed to provide liquidity. The return of the protocol for LPs, on the other hand, is completely independent of the status of DeFi or financial markets in general. Yield is provided by the profitability of the liquidity pool, which is earned through betting, allowing liquidity providers and DeFi farmers to become comparable to “home” in the classic bookmaking model.

The Rise of the Online Sports Betting and Crypto Industry

In 1996, about fifteen companies offered sports betting, which marked the beginning of online sports betting. It’s now one of the most popular hobbies on the planet, and with advances in technology, it’s never been easier. Despite more localized control, the industry has grown significantly and is worth more than $100 billion each year. Like the United States, major economies have long banned sports betting, but in 2018 the United States chose to reconsider its position.

This has led to a massive increase in sports betting revenue, with the United States alone taking in $1.5 billion in 2020 – in the midst of the pandemic, and with only a few participating states. Many states have enacted sports betting laws starting in 2022. Despite strict regulation and a high barrier to entry, the number of online bookmakers is growing year on year.

By 2028, the betting industry is expected to be worth $140 billion. However, significant innovations have only been linked to broader technological leaps in its more than 20 years online – the introduction of smartphones has led to mobile betting, which has fueled dramatic growth; a few new forms of betting have emerged such as esports and crypto-based gambling which have grown rapidly with innovations such as betting cashouts and bonuses paid in crypto to grow the industry.

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