[REVIEW] [GF: Phase 1, Voting Cycle 7] Overtime Markets

ARCHIVED & OLD Missions Governance Fund: Phase 1
,
1

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.

1600Ă—836 281 KB

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.

Project links:

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.

Optimism native?:

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:

24 Likes
2

Overtime has been my favorite and most actively used OP project. Im really looking forward to their continued development on other markets like world cup and college basketball, as well as expanding to parlays.

8 Likes
3

I strongly support Overtime Markets and their request for OP funds. Overtime, a part of Thales, will be one of the major catalysts to not only brings users to Optimism, but to onboard the next generation to web3.

The Thales team has been Optimism supporters from day 1, and one of the earliest protocols on the chain. Now with the development of a Sports AMM, they are able to attract an entirely new and massive set of potential new users. The sports positioning market is absolutely massive and rapidly growing. Platforms like DraftKings bring in over $1B of revenue annually, and they don’t have the advantages of being on-chain like Overtime. Sports positioners search high and low for the best odds and Overtime Markets has already proven to be a leader in this area, as predicted… Being an on-chain Sports AMM allows for relatively low overhead cost by relying on smart contracts and much less overhead than a traditional web2 book. This allows for some of the most competitive odds out there. The best odds bring bring in massive amounts of volume. As the technical and educational barriers to entry to web3 become less of a hurdle, I expect Overtime alone to be a HUGE source of new users to DeFi and to Optimism.

Over the past weeks and months Thales has proven that they can effectively use $OP rewards to bring awareness to their products and grow the eco. It’s been a great success so far and with Overtime in a state of continual growth, now is a great time to leverage $OP incentives to further ignite the future of sports positioning, Overtime!

-DC

8 Likes
4

The sky is the limit with the way Thales has proven that they can effectively use $OP rewards to bring awareness to their products and grow their ecosystem. It’s been a great success so far and with Overtime in a state of continual growth and collaborations they’ve had so far. Especially with layer2dao #No.1 DAO’s on #L2 ecosystem shows Thales is heading big and now is a great time to leverage $OP incentives to further ignite the future of sports positioning. Go Go Go :fire::fire::fire:

7 Likes
5

Can’t wait to see what Overtime will achieve with the FIFA world cup, for me it’s the only protocol present on Optimism that has the potential to bring a whole new category of users who have never interacted with crypto before.
Considering what the whole Thales team has already delivered in such a short time (Crypto AMM, Ranged Markets, Exotic Markets), I have high hopes on what they are going to do again with Overtime, LFG!

5 Likes
6

As an Optimism delegate with voting power above the required threshold I believe this proposal is ready. Delegate Commitments - #71 by MoneyManDoug

8 Likes
7

Overtime is certainly very innovative and the idea of ​​tokenizing sports results is brilliant! Income and fun!

7 Likes
8

Overtime is so far the best project I use on Optimism and in crypto sphere in general.
They are offering very competitive odds in comparison to other non-crypto betting platforms
which might bring new users even after initial incentives program dry up.

6 Likes
9

So excited to see this proposal here. Overtime Markets is an ambitious, truly unique Optimism project that is exemplary of the types of projects we need on L2s. We had the Thales team over to the Layer2DAO Discord the other week to give a product demo to over 100 community members, and everyone loved it. Such a great project, and a great use of OP tokens to help onboard users into a fantastic web3 use case.

6 Likes
10

The team behind the Overtime Markets and Thales are really wonderful. They’re building something really big on Optimism.

Would love to see this pass🙏

5 Likes
11

I am so happy to see this Proposal from Overtime Markets and would like to share my own experience with the protocol and team.

  1. First,

Overtime Markets has one of the largest TAMs of all protocols live on Optimism, the potential to onboard new users to L2 is immense, and this is a crucial differentiator in why I see so much potential here for both Optimism and Thales.

  1. Second,

you can see that Thales is already, but relatively quietly, absolutely thriving in terms of L2 metrics compiled by Orbiter Finance: it has the 3rd most active users of all dApps on Optimism only behind Uniswap and Hop! Pretty remarkable.

image
image1147Ă—418 63.9 KB

  1. Third,

I know the team personally and can vouch for their integrity, committment to the right vision and values that Optimism wants to be aligned with, and also their technical prowess in Web3. This is an excellent Proposal and should serve the entire Optimism ecosystem well.

Bravo, Thales and Overtime Markets!!!

  • Weston Nelson :red_circle: :sparkles:
8 Likes
12

Supporting Public goods and advancement of the Layer2 Ecosystem has been the core values of Optimism and Thales Protocol is on that path hence the need to support them at this Critical time.

Thales Protocol/Overtime Market will help to promote, scale and support upcoming Public goods on the Optimism network and Layer2 Ecosystem in general.

Every support giving to Thales Protocol will be a win win for the Optimism Network.

So their asking for 300k OP token to help them scale is a good move not just for Optimism Network alone but Layer2 Ecosystem in general.

Finally I will humbly appeal that Optimism Governance fund grant this all important request.

Vision24.

6 Likes
13

I’m a pretty outspoken fan of what Overtime are doing and am glad they’ve put the work into a proposal here. The timing is perfect for what they’re intending to roll out.

On a per-user basis, hoping to know – what are these fee rebates going to look like? If I place a bet, how much of a rebate do I expect to get, and how would it be distributed?

4 Likes
14

Hi @jackanorak great to hear you vouch for OT,

The current fee rebate model is currently implemented as per TIP-90 (Thales: Permissionless Parimutuel markets.)

"The maximum amount of bi-weekly rewards established are 8,000 OP tokens and 8,000 THALES tokens.

The leaderboard will calculate rewards as 90% rebate of the SafeBox fee, which is 2% of total amount paid in sUSD.

The $ value of OP and THALES will be calculated using a 7 days twap at the start of the period.

If at the end of the two weeks period the total rebates end up being more than the initial twap value of OP and THALES tokens, the rebate will be adjusted proportionally for every trader."

Users are able to see the leaderboard here: Sport Positional Markets built on Thales

Hope this helps!

2 Likes
15

This op token would help a lot the project and it’s user to further developpe their technologie, interaction and give some fame to a project that deserve it !!

1 Like
16

I’m not so sure that OP distribution via Thales is long term good. I can only see a farmers that use actual campaign for OP and when that stop no one come back to use again. IMHO long term not good conceived campaign

1 Like
17

I am an Optimism delegate [Delegate Commitments - #65 by mastermojo ] with sufficient voting power, and I believe this proposal is ready to move to a vote

2 Likes
18

This proposal is driven by the Thales team my questions are:

-Is Overtime Markets a Thales product?

  • Thales won a phase 0 grant and we have not seen results yet, are there any performance metrics from Thales?

This was their previous proposal:

  • If I remember correctly, the Thales team after winning phase 0 resubmitted for phase 1, which was rejected because they had not yet demonstrated results from the previous phase.

  • The proposer and the team is the same as the Thales team, is this correct?

1 Like
19

Can Thales provide details on the above grants, in your proposal of 10% of 900k tokens, was intended for builders can you update us, as well as your LM program?

According to your phase 0 proposal part of the funds would be used to incentivize part of the users of your products, overtime markets is not included in this?

1 Like
20

Overtime Markets is a product built on top of the Thales core infrastructure. The foundation market contracts used for Thales marketplace and the ThalesAMM contract were found to be a perfect fit to develop an instance of the contracts to revolve around Sports markets. With amazing relationship with Chainlink and their willingness to leverage Overtime to showcase their sports data capabilities, this is how Overtime was born. It is a separate product built using the Thales core infrastructure.

Overtime was not included into Thales OP token allocation distribution from Phase 0 because the product did not exist at that time. Phase 0 allocation was mostly designated towards THALES/WETH liquidity and thalesmarket.io product usage. We are considering the OP token incentives to be highly successful in what they were designated towards. Down below you can see some relevant metrics of Thales Marketplace growth since the start of OP incentives.

  • Monthly Trading Volume increased from ~$350k per month to ~$2.5M trading volume per month
  • Daily Unique Traders increased from ~10 to ~50
  • Daily Trades Executed increased from ~30 to ~200
  • Discord Members increased from ~2,000 to ~5,500
  • THALES token on-chain liquidity increased 5x and remained stable at around $2m of effective liquidity on the incentivized pool at around a stable ~100% APY.

There are already clear positive results around the effects of the OP token towards growth, marketing and exposure, even though most of Thales Phase 0 allocation still has ~3 months of distribution period that will remain true to the original Phase 0 proposal.

@OPUser shared his findings around Thales Phase 0 distribution results here: Goverance Fund Accountability - An overview

Regarding the question around Builders on Thales. The 90,000 OP tokens allocated towards community builders on top of Thales remain unallocated in the Thales treasury since there was not much initiatives yet. These will remain reserved as future incentives for community builders willing to work on structured products for Thales and/or alternate front-ends and similar initiatives.

Even though Overtime product was not included in Phase 0, we subsequently took around 15,000 OP tokens from the Protocol Usage bucket of Thales and distributed them as various incentives towards Overtime product users for the past 2 months. These small experimental incentives showed to be very effective towards bringing new attention to the product.

newuserreturninguse
newuserreturninguse935Ă—441 15.6 KB

2 Likes