TIP-134: Same Game Parlays

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

Simple Summary

This proposal suggests adding Minimum Spread per Sport when calculating the spread per market in Sports AMM.

Abstract

This proposal aims to add additional feature to Sports AMM by allowing for different minimum spreads per sport (ID) resulting in sharper odds

Motivation

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.

Specification

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.

Test Cases

Test Case A

Define minimum spread for EPL match (3 options game) = 2%
SafeBox impact = 1%
Sum of all implied odds = 1.03

Test Case B

Define minimum spread for NBA game (2 options game) = 9%
SafeBox impact = 1%
Sum of all implied odds = 1.1

Implementation

• minimum spread for EPL = 2%

• minimum spread for NBA = 9%

Copyright

Copyright and related rights waived via CC0.