[WITHDRAWN] Development of onchain Sports Markets infrastructure and Integration Kit

🏹 Mission Requests
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The following is a sponsored mission request created by @padzank:

Development of onchain Sports Markets infrastructure and Integration Kit

Delegate Mission Request Summary:

This Mission Request is focused on supporting development of a retail-facing Optimism-based application and Integration Kit for permissionless Sports Markets that is easily and permissionlessly accessible for any developer looking to leverage Optimism-based Sports Markets architecture to create their own Sports Market frontends.

The objective of the mission is to bootstrap Optimism network to the role of the main breeding ground of retail facing Sports applications that have a globally accessible,permissionless, non-custodial and decentralized Market Making and Liquidity backend on-chain developed by this mission applicant. If successful, this mission has the opportunity to onboard millions of Web2 sportsbook users to the Optimism network due to the presence of lucrative onchain incentives combined with a non-custodial transparent collateralization and market making architecture, globally accessible via openness of the missions Integration Kit and the decentralization of the Optimism network.

S5 Intent 22: Intent 3 - Improve the Consumer Experience

Proposing Delegate: MasterMojo with the Synthetix Ambassadors

Proposal Tier 16: Eagle Tier

Baseline grant amount: 250,000 OP

Should this Foundation Mission be fulfilled by one or multiple applicants: One

Submit by: To be set by Grants Council

Selection by: To be set by Grants Council

Start date: ASAP

Completion date: To be set by applicant

Specification

How will this Delegate Mission Request help accomplish the above Intent?

With this mission accomplishing a development of an easily accessible infrastructure and Integration Kit for Liquidity, Market Making and data of Sports Markets, anyone on Optimism can use it to create his own sports market application. Sports markets are a global industry of ~$50B annual revenue and ~150M in active users. With a globally accessible infrastructure on Optimism, the growth and adoption opportunity is enormous.

This mission has the potential to make Optimism the leading network that houses a backend of next generation Sports Markets developments.

What is required to execute this Delegate Mission Request?

  • Development of permissionless Market Making and Collateral smart contracts on Optimism for Sports Markets that preferably use decentralized oracle solutions for getting Sports Data on chain
  • Development of API or SDK Integration Kit that communicates with the previously mentioned smart contracts backend that can be used to deploy the supported Sports Markets on any integrating platform

How should the Token House measure progress towards this Mission?

  • Deliverables on smart contracts development required as a sports trading base layer
  • Deliverables on API or SDK development required to have easily integratable sports trading base layer for all developers on Optimism
  • Adoption of the built Integration Kit measured via successful integrations that actively use this kit on Optimism

How should badgeholders measure impact upon completion of this Mission?

  • Measure increase of Sports Markets adoption on Optimism via on chain metrics analysis
  • Measure onboarding of new users to Optimism via Sports Markets apps built via this missions Integration Kit
  • Hands-on testing of the applications built by this missions Integration Kit

*Have you engaged a Grant-as-a-service provider for this Mission Request? If so, please disclose the details of this arrangement, to the extent possible: No

*Has anyone other than the Proposing Delegate contributed to this Mission Request? If so, who, and what parts of this application did they contribute to? Yes, it was created by @padzank

5 Likes
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Sports Markets mission is definitely welcome. If I may suggest an edit here: given the focus on Intent 3 - Improve the Consumer Experience, I suggest this mission expands its focus from infrastructure only to dapp level user experience as well.

More specifically technological advances in sport markets trading interfaces, wallet abstraction, one click positioning, or any other enhancements in user onboarding.

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Love the idea of a sports market on Optimism.

My main comment is that this seems like a LOT of OP for an up-front grant. How did you arrive at that amount and do you think a reduction would be reasonable?

1 Like
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Thank you for the feedback!

I definitely do see the value of focusing on the UX of trading interfaces (implementations of ERC4337 standard, Paymaster gas abstraction, bundlers, Social Logins etc.) especially for a retail facing products such as sports markets.
This mission throws a wider net than solely focusing on the forward facing interface, which it indirectly promotes as well. It aims to help build a top of the line consumer experience for sports markets on a Optimism wide level with firstly a trading backend, developer-friendly integration kit and then promote the creation of many retail friendly sports markets interfaces with the chain abstracted. The successful result would be an entire ecosystem of retail facing trading interfaces with easy onboarding and account abstraction that makes Optimism the backend hub.

1 Like
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Hey Michael! Really appreciate your feedback.

The amount was the hardest part to reasonably estimate when writing the mission request. Since this mission encompasses a multi-layered execution necessary for it’s completion (smart contract settlement layer backend and developer-friendly integration kit), it probably also entails a lot of talent to do a lot of work. Also if successful, this mission has the potential to trigger the onboarding of retail users to the onchain world to a large extent, all through Optimism. It can cause developers on Optimism to start focusing more and more on actually building dapps focused solely on totally abstracting away the onchain interactions, if they wish to onboard retail sports markets fans.

When estimating the amount, I was also under the impression that a party that completes this mission request would also use the OP tokens to actually aggressively bootstrap the adoption and growth of the developed infrastructure. This would be beneficial to be outlined in detail on the application for this mission and a major deciding factor for approval.

With all that said, it is really difficult from my POV to estimate what the builders would feel is a reasonable amount to tackle this endeavour that has a really massive potential. I am open to listening for feedback and accommodating this mission draft to proposed ask reductions, especially from representatives from the council who have a more experienced view on this topic.

1 Like
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Thanks for the application.

Two questions:

  1. Why is this particular type of infrastructure necessary to get a sports market on Optimism? There are presumably several different sports markets existing with different types of infrastructure.
  2. How many projects are building in this direction, and which three are the furthest along?
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Hey Jack! Great questions.

  1. Every type of onchain derivative market, with sports markets included, requires a Market Making architecture that prices the derivative and a Collateral architecture that supports that derivative market payout. It was just a broad requirement of having an actual onchain trading mechanism for sports markets. It was not meant to be read as a particular type of sports markets infrastructure. The goal of the requirement was that a mission applicant has to actually execute the trading onchain on Optimism for the mission goal of Optimism growth to make sense and not be a centralized, offchain sportsbook.

  2. From the top of my head, the most prominent projects building in this infrastructure direction already and probably capable of applying and executing on this missions requirements on the Optimism network are: Thales Protocol, Azuro, WiNR, SX Bet etc. There are probably more teams capable of executing that I am not familiar with.

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After considering the feedback from @Michael around the Baseline grant amount, I think it is reasonable to reduce the value from 500,000 OP to 250,000 OP.

Cc: @mastermojo

2 Likes
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Edited to drop OP amount from 500k to 250k

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Additional commentary to further convey the end goal of this mission request:

Sports Markets are a massive market globally and one of the rare clear product market fits of leveraging the nature of Ethereum smart contracts. The proposed request for a Optimism based infrastructure for Sports Markets has the potential to elevate this from a “emerging market” label within web3 to a new globally adopted standard that is hosted on Optimism network that eats the cake of centralized Web2 giants.

For reference, FanDuel app had 5.8M downloads in 2022, DraftKings 4.9M, Bet365 4.1M etc. Now with Account Abstraction progress, anyone could use this requested IntegrationKit to build his own Sports Markets app secured by abstracted Onchain smart contracts for pricing and trading. The web3 tooling is finally ready for this and the adoption potential is limitless.

App downloads for 2022
App downloads for 2022741×267 6.8 KB

App downloads for 2022

These same web2 apps I used as example had $7.4B revenue in the US and $2.36B revenue in the UK for the same year. These apps are highly limited in availability and unfair centralized settlements and UX. Something that’s much more improved with a Web3 app that could be built by using the proposed integration kit on Optimism as a foundation.

image
image756×494 5.07 KB

Web2 Sports Markets revenue in the US per year

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You dont need 250k OP to build this.
Took me a weekend to make this which is for options on arbitrary assets/api and I dont even plan to release it.

Would take maybe 2w for a decent dev to build this.

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Perhaps you have misinterpreted what this mission actually aims for. This does not seem like being relevant to this mission request in any way or form.

This mission request aims for a full stack smart contract architecture and an integration kit infrastructure for the said architecture.

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  • Development of permissionless Market Making and Collateral smart contracts on Optimism for Sports Markets that preferably use decentralized oracle solutions for getting Sports Data on chain
    docs.scry.finance/docs/
    docs.hedge.markets
    binary conditional payouts can be done by changing like 2 lns in this option contract. Already supports arb data source using oracle infra. custom would be like 1d of work
  • Development of API or SDK Integration Kit that communicates with the previously mentioned smart contracts backend that can be used to deploy the supported Sports Markets on any integrating platform
    hedge.markets

You dont need an API for deployment, its 1 fn.

hedge.markets

These deliverables may sound like a lot, theyre not, this is a moneygrab.

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@padzank can you clarify what this proposal suggests over and above what @Pr0 is saying?

Reminder, by the way, that Thales can easily apply for a grant through the Grant Council once that opens up.

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Getting reliable sports data onchain is only part of the problem and using some “scry.finance” oracle infra that does the same as Chainlink functions but probably worse and less secure is not a good argue for your case.

How would this solve collateralization and on-demand market making of sports markets? From where would it get collateral liquidity onchain required for said market making? How would it implement odds into said sports markets? How would it manage risk for market making these sports games onchain? If there is no pushed odds and automated market making for these sports markets, what makes you think anyone would use this backend as integratable infrastructure for third party sports markets application (which is the goal of the mission) when there is no out-of-the-box liquidity for end users?

This is not as simple as building an escrow contract that has binary outcome distribution triggered by a web2 api brought onchain. This is not enough to build an out-of-the-box integratable infrastructure.

And I don’t appreciate the language of branding this as “money grab” so easily without doing enough due diligence and basic reading of the mission request.

Anyone can apply for this mission and the more teams or individuals applying with their own blueprints to bootstrap this narrative, the better. The applicants competition itself has the potential to kickstart something great on Optimism.

If this mission is successful, you should definitely try and apply.

1 Like
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I written my feedback to Pr0 on the message above which mostly answers your questions as well.

To further clarify, this mission requests asks for a development of a permissionless easily-integratable architecture for Sports Markets with out-of-the-box liquidity, market making and sports data on Optimism with the mission goal of making Optimism the main network of choice for all future builders that want to create their own Sports Markets project.

Again I emphasize, that the nature of mission requests and this mission specifically is not aimed towards any single project to apply, but I would personally love to see many projects, builders and teams apply for this mission with the best of their abilities.

The mission goal is to invigorate this untapped ecosystem with a massive growth potential for Optimism.

2 Likes
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So really the only proposal you’re making other than the contract that would take 1w would be to take the OP for liquidity?

How would this solve collateralization and on-demand market making of sports markets?
docs.hedge.markets
Would take 1h for arb collateralization and creation.

How would it implement odds into said sports markets?
Through api or split token for binary outcome claim

How would it manage risk for market making these sports games onchain?
Through api or split token for binary outcome claim

Your proposal -was- as simple as building an escrow contract that has binary outcome distribution triggered by a web2 api brought onchain. Show me where in ur proposal it has more, because atm either ur def trying to moneygrab and make this appear hard or your spec sucks, either way theres 0 way this should go through.

  • Development of permissionless Market Making and Collateral smart contracts on Optimism for Sports Markets that preferably use decentralized oracle solutions for getting Sports Data on chain
  • Development of API or SDK Integration Kit that communicates with the previously mentioned smart contracts backend that can be used to deploy the supported Sports Markets on any integrating platform

Getting reliable sports data onchain is only part of the problem and using some “scry.finance” oracle infra that does the same as Chainlink functions but probably worse and less secure is not a good argue for your case.

  • Development of permissionless Market Making and Collateral smart contracts on Optimism for Sports Markets that preferably use decentralized oracle solutions for getting Sports Data on chain
    Hedge 101 - Hedge
    Morpheus - Scry Protocol
    So not only does this alone fill both parts, the top took me a weekend and Sports Markets are simpler. If this goes through then will def apply because 750k for like 2d of code.
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Again, I do not see from where the collateral liquidity magically comes from in your proposal and how can anyone potentially use this proposed infra to build a collateralized user friendly sports markets application (mobile or not) with out-of-the-box on-demand market making for 100s of individual sports games.

You are downplaying what it takes for this mission significantly. If its “2d of code” for you, I then implore you to try and build what you describe (regardless of this mission request being approved) because onchain sports markets infra is a massive product market fit for the blockchain world and a global game changer. Who knows, maybe even just you can do what many teams have tried over the years, and change the entire industry in “2d of code”.

2 Likes
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Not in yours either.Your spec and request does not

  • create collateral liquidity
  • build a collateralized user friendly sports markets application (mobile or not) with out-of-the-box on-demand market making for 100s of individual sports games.

Am now convinced this is a scam for OP because you keeptalking about amazing liquidity and users and markets but not how youre going to do them, how youd build it,where in ur proposal it has more than

  • 2 smart contracts on Optimism for Sports Markets that use decentralized oracle solutions for getting Sports Data on chain - 2d
  • 1 Development of API or SDK Integration Kit that communicates with the previously mentioned smart contracts backend that can be used to deploy the supported Sports Markets on any integrating platform -1h - its a simple deploy script
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“Am now convinced this is a scam for OP because you keeptalking about amazing liquidity and users and markets but not how youre going to do them, how youd build it,where in ur proposal it has more than”

Padzank is not a scammer and has been building on Optimism since the early days. Please keep this civil, and focus on the Mission Request.