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Azuro Protocol is an open-source public-domain software including a set of smart contracts, written in Solidity that can be deployed on the Ethereum Blockchain, and/or other blockchains.
What you will learn?
- Role of the Azuro protocol in the bookmaker.XYZ
- Different parties involved in the Azuro protocol
- Conflict resolution and fairness
Azuro protocol acts as the base layer for decentralized betting where markets are priced, created, and made liquid. This is achieved through mixing 3 of crypto’s main primitives: Prediction Markets, NFTs, and DAO governance, plus a new Liquidity Pool design, called the Liquidity Tree.
The result is a slick betting feed with thousands of liquid markets, a rich feature set, and a clean UX. Apps/Frontends built on top of Azuro can provide players with a viable, trustless, decentralized alternative to traditional online betting operators.
bookmaker.XYZ is an Azuro Protocol frontend operator. We are in charge of providing a user interface for placing bets.
We have no liability or duty for betting resolution or liquidity provision. Such is provided by independent members of the Azuro decentralized ecosystem, interacting through Azuro's set of smart contracts coded into the blockchain.
Azuro protocol enables a blockchain-based ecosystem of independent data providers/oracles, liquidity providers, and front-end operators governed by a neutral DAO.
Oracles create betting events and resolve them (provide information on how the events finish). Based on the Oracles' input, the smart contract transfers tokens from the Liquidity Pool to bettors automatically.
Liquidity Providers on Azuro lock liquidity in the liquidity pool(s) in exchange for the chance to earn % of the profit of the pools in return. The liquidity pools earn through the spread embedded in the odds on which bettors can place bets.
This provides a unique opportunity for LPs, as the performance of the Azuro liquidity pools has no correlation to general financial markets, crypto markets, or prices. As long as odds on Azuro are moving effectively, over time the spread earns the return for the liquidity pools and therefore - the LPs.
It is important to understand that although the risks of losing funds when providing liquidity are low, it is possible that the liquidity pool(s) are not profitable at times and shrink in size.
The Frontend operator delivers the environment/service (website, app, widget, etc.) where bettors can place bets.
Front-end operators have access to necessary data about events and markets available on the protocol (league names, team names, logos, etc.) via IPFS where all is stored. A link to data about each event is stored in the smart contract.
This approach gives an opportunity for a new breed of betting industry participants to emerge, covering wildly different markets, people, and cultures. From influencers and sportsmen to sports leagues and clubs, from CeFi and DeFi platforms to Play2Earn on-chain games - anybody is able to create customized products for their own target audience.