In a recent announcement, LunaFi has paved the way for the publication of their betting protocol. Within this project, LunaFi allows users to provide liquidity to programs and to gain a house advantage from doing this. With this advantage, they will then gain a share of all the profits from any betting activity that’s associated with that protocol pool.
The betting space has long been an attractive pursuit for gambling businesses around the globe, with a house advantage always implicitly given to the proprietors of the betting arena. Due to this, betting and gambling always happened without much accountability and very little transparency.
Many businesses have been looking to expand the betting space into the world of cryptocurrencies, due to the countless applications of crypto within gambling. For example, the ability to add vastly different fiat currencies represents a potent avenue of pursuit.
LunaFi seeks to be the solution to on-chain betting, providing anyone that wants to join their liquidity pools the very best house advantage. Bets are programmed with smart contracts, with decentralized oracles being the reporting agents that state the outcome of every betting event.
With this considered, this decentralized approach ensures that bets have the maximum possible level of transparency, with payout suggestions being stated to those liquidity providers beforehand. Both bettors and those that join the house liquidity pools will be able to pay and earn with Bitcoin, Ethereum, USDC, and LFI. As the platform is stable, the risk is only ever on the betting side of the equation.
George Porchester, a serial entrepreneur and ex-professional gambler, has assembled the team behind LunaFi, leveraging his extensive contacts in the industry to produce the platform. Discussing LunaFi, he suggests, “We want to bring our experience in traditional gambling platforms to the crypto world, whilst removing the incentive problems you face with a centralized house.”
The movement away from centralization also provides further possibility for community engagement, with George commenting that “Players now have a chance to own part of the ecosystem they are involved in, much like the spirit of DeFi. This is why we enable anyone to become the house and have a passive way of earning income.” This is an important step for both crypto and betting, the unity between these fields providing a stunning result.
Going beyond these simple mechanics, LunaFi is also seeking to establish a unique rewards system and bet mining program that will help reward bettors. This will initially work by removing the house edge with any rewards claimed in $LFI.
To get the ball rolling, LunaFi is currently running a fair launch IDO in an attempt to gain some liquidity of LFI. Named “LunaFi Crash”, they are running a gamified event that will actively showcase the betting mechanics of the central system. Based on the simple metric of whether an ever-rising rocket will crash or not, provoked by events defined in random smart contracts, this is a unique way of uniting betting and cryptocurrency.
As this system launches, LunaFi will be an interesting system for investors and betting enthusiasts alike to keep their eye on. We can’t wait to see what LunaFi does next.