Project name: Overtime Markets
Author name and contact info: padzank, can be contacted through Telegram (@padzank) or Discord (padzank#2734).
I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: Yes
L2 recipient address: 0x489863b61C625a15C74FB4C21486baCb4A3937AB
Grant category: Governance Fund Phase 1
**Is this proposal applicable to a specific committee?:**DeFi committee
Project description (please explain how your project works):
Overtime Markets is a novel and unique Sports Markets AMM product that is built on top of the Thales core architecture powered by Chainlink Sports Feeds, and is currently exclusive to the Optimism network. It provides a world’s first successful attempt of permissionless, liquid and fully on-chain Sports Markets, where users can trade on tokenized outcomes of world’s most popular sports leagues without any limitations. It utilizes the Thales Protocol core architecture to offer on-demand liquidity to markets revolving around sports events with mutually exclusive outcomes in the likes of HOME WIN, AWAY WIN or DRAW. Each outcome is represented by ERC20 tokens which are available for purchase from the Sports AMM that prices these tokens based on Chainlink provided pre-game odds. Only one type of these positional tokens is able to redeem the sUSD collateral in 1:1 ratio from the contract representing the individual game, based on the post-game results that are also fed by the Chainlink oracle directly to the smart contract.
Launched exclusively to Optimism close to the beginning of August 2022, Overtime Markets supported MLS Soccer League events and MLB Baseball League events “off the bat” from the Chainlink oracle provider. Summer being an off-season for most major global sports events and leagues, it came as beneficial to Overtime to do initial public beta testing during these times of limited markets until the second half of August, when all the popular sports leagues started. Subsequently to successful launch and the positioning working flawlessly as intended, the offering on Overtime increased to all major European Soccer leagues and UFC fighting events. During this same time period, limited and experimental short term OP+THALES token subsidies were put in place, provided from the Thales Treasury (Phase 0 allocation), towards Overtime traders. Current emissions are around 4,000 of each tokens per week and, even though they are low in comparison, they are already quite effective towards garnering new attention towards Overtime and significantly increasing the growth metrics.
In approximately two month’s time since launch to date, Overtime markets drove ~$1.05M sUSD of trade volume and ~2.1M sUSD of notional volume on limited off-season sports offerings. It accomplished this with 943 unique users that executed a total of 8,609 trades. Currently, there are on average ~60 unique daily traders and the current average daily txn count on Overtime is around ~200.
Upcoming Major Milestones:
On-chain Parlay AMM - Parlays are a common betting framework that allows for cumulative series of positions in which potential winnings accruing from each chained position are used as a stake for further positions, effectively offering leveraged trading on Overtime. If only one position from the chain is a loss, the entire chain collapses as a loss. Overtime On-chain Parlays execution plan is already in the codebase building stage by using the already deployed blueprint found in the TIP-72:Parlay AMM Governance Proposal Draft. Since it allows for leveraged positions on Overtime, Parlays have a massive potential to exponentially increase daily volume and bring in more users that are willing to participate in higher risk but also higher reward positions.
Aggregated Sports Data Feeds - Current Chainlink provided on-chain Sports Data required for Overtime operation are reliant on a single sports data provider called The Rundown. Since The Rundown is in-itself a API aggregator, it still represents a single point of failure on-chain. To avoid the centralization risk of using a single on-chain data provider, Chainlink and Overtime are working together towards providing a solution that involves a framework of Sports Data Aggregation that will have multiple sources of aggregated Sports Data on-chain providing a much more robust and decentralized solution that will provide a good bedrock for future scalability efforts.
Expanded Sports Offerings - With new on-chain sports data feeds emerging constantly, Overtime offering will also grow with it in tandem. One of the most popular requests are NBA games, which will be supported on Overtime as soon as the league starts. It is also communicated from our on-chain data providers that they are also planning to push for feeds relevant for Player Props offerings across major sports, which are also one of the most popular requests. Overtime is also well under way of feasibility testing the Racing Sports offerings from a Chainlink node provider specialized for those types of positions. The first addition of this type is most likely to be Formula 1 Grand Prix H2H Matchups. Additionally, major Esports events are also one of the most requested features which Overtime is actively working on with the on-chain data providers.
- Website: Overtime Markets
- Twitter: https://twitter.com/OvertimeMarkets
- Discord/Discourse/Community: Discord
- Please include all other relevant links below: Overtime Documentation, Analytics Dashboard
Additional team member info (please link):
Core Contributors Discord/Telegram:
Tech lead - Danijel | Thales#0627 / @DanThales
Marketing Lead - Red | Thales#3636 / @Red_Thales
Please link to any previous projects the team has meaningfully contributed to: Thales
Relevant usage metrics (TVL, transactions, volume, unique addresses, etc. Optimism metrics preferred; please link to public sources such as Dune Analytics, etc.):
Metrics achieved in 65 days since launch on Optimism:
- 943 unique traders
- 8,609 total trades
- above 200 txns per day
- 15 supported sports leagues and rising
- $1,041,389 Settled Volume
- $2.1M Notional Volume
- above 60 Unique Daily Users on average incl. daily new users
- Overtime Markets Dune Dashboard
Competitors, peers, or similar projects (please link):
None that we are aware of.
Is/will this project be open sourced?
Yes, Overtime Markets are Open-Sourced and can be found in this repository.
Yes. Overtime Markets are exclusive to the Optimism Network only.
Ecosystem Value Proposition:
- What is the problem statement this proposal hopes to solve for the Optimism ecosystem?
Demand for a product with a clear market fit outside of a Defi niche, huge worldwide addressable market, with massive potential for onboarding people into Optimism and web3.
- How does your proposal offer a value proposition solving the above problem?
Overtime Markets represent a world’s first successful attempt of permissionless, liquid and fully on-chain Sports Markets, where users can trade on tokenized outcomes of world’s most popular sports leagues without any limitations.
- Why will this solution be a source of growth for the Optimism ecosystem?
Overtime Markets have the potential to be the catalyst that draws in a much wider audience directly to the Optimism network, that are not necessarily crypto native users. Sports Positioning is a huge global market and Overtime is a clear market fit because of the limitless and borderless nature of the Ethereum network that is also inherited into the Optimism network. Every “moving part” of Overtime Markets is run by smart contracts and Chainlink data feeds without any manual inputs, and anyone with an Ethereum wallet can freely participate in positioning on any popular sports events via this product.
Has your project previously applied for an OP grant? No, Overtime did not apply for an exclusive grant.
Number of OP tokens requested: 300,000 OP
Did the project apply for or receive OP tokens through the Foundation Partner Fund?: No
If OP tokens were requested from the Foundation Partner Fund, what was the amount?: N/A
How much will your project match in co-incentives? (not required but recommended, when applicable):
Project with match co-incentives with THALES tokens to a certain degree that will be determined by the governance structure.
How will the OP tokens be distributed?
70% as incentives in form of Fee Rebates to create an inviting environment to help with the Overtime growth and user increase.
30% as targeted events to help user growth of new league and sport integrations. The FIFA world cup would be the first recipient of the sports targeted distribution and we are planning 20k to 50k OP for the FIFA tournament. We are wanting to promote this tournament with markets that would be incentivized based on expected user growth.
Over what period of time will the tokens be distributed for each initiative?
Approximate planned distribution is to last for 6 months.
Please list the milestones/KPIs you expect to achieve for each initiative, considering how each relates to incentivizing sustainable usage and liquidity on Optimism.
The main KPI with Fee Rebates is to bootstrap unique user acquisition, exposure and thus an increase in organic trading activity. Fee rebates introduction should see an increase in daily new users, as well as an increase in total trades. We are expecting a 20 to 40% increase in these numbers with fee rebates activated.
KPI on the targeted incentives will be measurable through Dune Analytic where incentivised leagues and matches would expect to see a 30 to 50% increase in volume after implementation.
We are hoping to reach a total volume of $3,000,000 by the end of incentives.
Why will incentivized users and liquidity on Optimism remain after incentives dry up?
The key to Overtime Markets success relies on getting sufficient attention and making it accessible to new users. The initial bootstrap of Fee Rebates has a goal of drawing attention to the product and we are certain that users will remain when it becomes evident that Overtime provides the worlds best odds in Sports Positioning exactly because of the lack of middleman fees inherited from the nature of the Ethereum Network. Overtime Markets presents a solution to global permissionless accessibility towards Sports Markets and can be a floodgate of real life adoption and growth of the entire Optimism network.
Please provide any additional information that will facilitate accountability:(smart contracts addresses relevant to the proposal, relevant organisational wallet addresses, etc.)
Relevant Smart Contracts:
Current Chainlink Data Providers: