Be the house

Add liquidity to the house bankroll to earn a share of fees on winnings and house gambling profits

All betting on Digitex Games is peer-to-peer, meaning that active Players of our games are always betting against other users who are acting as the House. Users who are acting as the House are called Liquidity Providers (LP) and they make it possible for Players to place any bets they like at any time and be guaranteed of finding a counterparty for their bet.

Players can bet on our games with ETH, USDC, USDT, ARB or DGTX tokens. Therefore, you can add liquidity denominated in any of those tokens into the house bankroll smart contract. Liquidity Providers do this for the following financial incentives:

  • 1% of every ETH, USDC, USDT & ARB denominated winning bet is paid to the Liquidity Providers.

  • All gambling losses by the Players in all token denominations are won by the Liquidity Providers.

  • Liquidity Providers receive their proportional share of fees on winnings and gambling profits according to the level of liquidity they are providing to the house bankroll smart contract.

The house bankroll smart contract is fully non-custodial. When you deposit tokens into it you receive LP tokens that exactly represent your share of the pool. These LP tokens are ERC-20 tokens which can be paid back into the house bankroll smart contract at any time to claim back your proportional share of the pool. LP tokens are minted when you deposit liquidity and they are burned when you withdraw liquidity.

All LP tokens in existence always represent 100% of the house bankroll balance. As the balance of the house bankroll smart contract increases from the accumulation of fees on winnings and from gambling profits, so will the value of your LP tokens proportionately increase because they represent that balance.

Adding DGTX Liquidity to the House Bankroll

DGTX denominated betting has no fees on winnings so why will liquidity providers risk their DGTX tokens to act as the counterparty against players when there is no edge working in their favor?

The theory is that even with no house edge or fees on winnings, the house will still beat the players because the house has unwavering discipline and is always highly capitalized. In comparison, many players will bet erratically and will be undercapitalized to survive the unexpected but inevitable losing runs.

Indeed, many players will get ahead of the house and stay there for a long time, but as an overall group the players will ultimately lose to the house over time simply because the house is better capitalized and doesn't get wiped out by losing runs. This is because the maximum bet size on any game is 0.1% of whatever the house bankroll balance is for that token.

So if the house is losing the maximum bet size will constantly decrease, ensuring that the house never has to stop. In comparison, most players will be gambling at a much lower rate of capitalization than 0.1% of their bank and will likely be wiped out by a losing run of 10 or 15 losing bets.

Therefore, despite their being no fees on winnings on DGTX denominated betting you can still earn a passive income by being a DGTX Liquidity Provider and depositing your DGTX into the house bankroll smart contract.

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