TIP-152: Introduce new `minOddsPerSport` and `maxSpreadPerSport` variable parameters to the `SportsAMM` contract

id	Title	Status	Author	Description	Discussions to	Created
TIP-152	Introduce new minOddsPerSport and maxSpreadPerSport variable parameters to the SportsAMM contract	Vote Pending	padzank	Introduce a new minOddsPerSport and maxSpreadPerSport variable parameters to the SportsAMM contract to be able to offer higher decimal odds for different sports and leagues	https://discord.com/invite/8bzFdpGTrp	2023-07-06

Simple Summary

Introduce a new minOddsPerSport and maxSpreadPerSport variable parameters to the SportsAMM contract to be able to offer higher decimal odds for different sports and leagues.

Abstract

Until this point, the max possible return on Overtime Markets is capped globally at 20x from Buy-In for all supported sports and leagues. With the product maturing and new offerings popping up, it is safe and beneficial for UX to be able to increase max possible return for specific leagues and sports. This TIP proposes to implement a solution allowing this by introducting minOddsPerSport variable parameter to the SportsAMM contract. This TIP additionally proposes to implement maxSpreadPerSport variable parameter so the sports and leagues that offer higher capped decimal odds can have lower max spread to accompany it.

Motivation

With new sports and position types being added to Overtime, the need for higher cap on potential return follows it. For example, the addition of Golf and Formula 1 entails many exclusive outcome markets where each one requires higher decimal odds than current global cap (50.0 decimal odds in some cases). With the sharpness of odds and the AMM performance proving itself day by day, decreasing minimal implied odds for specific sports and leagues is deemed safe for the AMM and the liquidity pool. By increasing the max potential return cap, there are more offerings available to users that offer higher risk but higher return. It adds to the betterment of UX of Overtime and has a potential to invite more new users to the platform.

Specification

This TIP entails the Thales Protocol DAO to introduce and implement new minOddsPerSport and maxSpreadPerSport variable parameters to the SportsAMM contract that will allow setting custom minimal supported odds per league or sport by the AMM and custom maximum spread per league or sport by the AMM.

These variables can be changed to fitting parameters by the discretion of the Thales Protocol DAO.

Copyright

Copyright and related rights waived via CC0.

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