| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-138 | Add Minimum Spread per Sport | Draft | kirila | Adding Minimum spread per Sport | discordlink | 2023-04-23 |
This proposal suggests adding Minimum Spread per Sport when calculating the spread per market in Sports AMM.
This proposal aims to add additional feature to Sports AMM by allowing for different minimum spreads per sport (ID) resulting in sharper odds
The Sports AMM currently has a default minimum spread for all sports. The intoduction of minimum spread per sport provides more adjustable odds to capture the dynamics of each sport individually.
Specified odds per sport provides better edge for high rollers (in soccer) or prevents high exposure in more fluctuating odds for sports such as NBA.
Additionally newly added sports or sports with low liquidity (e.g. Esports) need wider spread.
Introduce new variable min_spreadPerSport in Sports AMM.
The value is a spread percentage (%) and depends on the sportID.
Each sportID has its own minimum spread (%).
In case a minimum spread (%) is not defined for a sportID, the default minimum spread (%) is used.
Protocol DAO is entitled to change this variable as it best sees fit considering he liquidity and PnL of a given sport/market type.
Define minimum spread for EPL match (3 options game) = 2%
SafeBox impact = 1%
Sum of all implied odds = 1.03
Define minimum spread for NBA game (2 options game) = 9%
SafeBox impact = 1%
Sum of all implied odds = 1.1
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minimum spread for EPL = 2%
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minimum spread for NBA = 9%
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