OpenBook Model

OpenBook operates on a hybrid prototype that takes the elements necessary from both centralized and decentralized design ideals and meshes them to solve problems with both. As mentioned previously, this is accomplished by three groups of actors. Bettors, Liquidity Providers and Odds Providers. The LPs here can be likened to the “house” in a traditional casino or sports book, Odds Providers to odds providers who service these bookies use and the Bettors place their bets against the liquidity pool filled by the LPs on a given odds.

Odds Providers will create their vault and will run a script to get odds and outcomes from a third-party source. The initial sample script will be provided. Providers will update the odds when there is a big enough deviation. In case the LPs don't want to take risk they will define an imbalance threshold to limit liquidity on a same game in case one game gets single directional odds. They will then get a % of the vault earnings.

Odds Providers will post their reasoning and reputation in the discussion board. LPs will then find a Vault to back and back them. In short term LP balance might go down. But over time, good odds converge to probablity and the LP balance will go up.

Betters will then see the best odds and bet on them. We expect a couple of Vaults to dominate most of the market and some to specialize on certain events.