Liquidity Provider

How does liquidity work at Debets?

Liquidity is used to match bets placed by other players. When a player wins, their payout comes from the pool. If the player loses, their wager is added to the pool, benefiting liquidity providers.

Why should I provide liquidity?

All games on Debets offer a house edge of over 2% in favor of liquidity providers. As the saying goes, “the House always wins.” Debets bridges the world of iGaming and DeFi, allowing anyone to become the House and earn from players’ wagers.

What does it mean to be the House as a liquidity provider?

Liquidity providers deposit ERC20 tokens into the pool and receive LP tokens representing their share. As the pool gains or loses value through betting outcomes, the value of LP tokens fluctuates accordingly. LP tokens can be redeemed for ERC20 tokens at any time.

Can I add a liquidity pool using any ERC20 token?

Yes! You can use any ERC20 token. However, if you are the first to add liquidity for a token, you'll need to deploy a contract to activate it on the platform.

Will I lose all my liquidity in one bet?

No. The maximum payout per bet is capped at 1% of the total liquidity pool, protecting liquidity providers from excessive losses.