BetSwirl <> Frax - Proposal

Governance Proposals Liquidity Providing
1

Hi there!
I’m Romuald, CEO of BetSwirl.
We’d like to share a proposition and get the community’s voice, feedback and opinions.

Summary

Use gaming to add a revenue stream on top of another $FRAX utility.

Abstract

Listing $FRAX on BetSwirl would allow $FRAX holders to try their luck on the games. On each won bet, part of the house edge would be distributed to benefit the Frax tokenomics (burn, boost farm APR, airdrop…).

Overview

  1. Frax would deposit an amount of $FRAX on the bankroll, being owner of it: deposit, withdraw, risk rate, house edge harvesting, Chainlink VRF v2 subscription owner, Chainlink Keepers to automate the house edge harvest. With a bankroll of 10k$ worth of FRAX, the max payout (bet amount + profit) at a 2% risk (based on our simulation there’s unlikely of bankrupt at this risk), would be 200$ per bet, which means a revenue for Frax of 3.5$ worth of FRAX (considering 50% house edge for Frax).
  2. Frax to configure the min bet amount on each games.
  3. Frax would receive an income based on the volume of won bets, that could be used to burn, boost pool APR, transfer to your treasury, or your idea?

Motivation

People like to play and try new games, even if the house has the edge (we’ll add skilled and PVP games in the future) on the current BetSwirl’s games (Dice and Coin Toss) on the long run, it adds a utility to each token.

References

Titano.finance and Sphere.finance decided to use BetSwirl’s games to add another gaming utility to their token, but most importantly a revenue stream used to boost their burning routine, so far:

  • 17M $TITANO burned (~51K$) - from the 3rd of June to the 20th.
  • 1.8M $SPHERE burned (~8.8K$) - from the 14th of June to the 22nd.

That might sounds over simplified but we’d like to get your general opinion about “enable gambling FRAX” and “utility for Frax’s tokenomics”.

Thank you in advance,
Best regards,
Romuald, and BetSwirl’s team.

2

Lots of red flags here.

As i mentioned in other betting proposals;

Its highly unlikely you dont have a betting license in any jurisdiction.
Its highly unlikely you dont have any KYC system in place.

The end result is your platform will be offering illegal gambling and will mainly be providing this service to children.

i would strongly oppose any partnership with a gambling platform / project unless the above points are addressed.

1 Like
3

We do have the evidence regarding our ongoing licensing process in Curaçao, this could be shared to the team.
We’d like to prevent players KYC/AML on BetSwirl as we are operating on-chain, so we are dealing with the licensor in order to figure it out.

4

I will be shocked if the population of Curaçao will result in a big turnover in betting.

Curaçao cant give you a licence to operate in places like the UK, France, China, USA or any major 1st world country

like all betting companies you will need a licence in each country you operate, you will need to do KYC and in some countries you will need to have isolated betting markets and pay taxes in them countries to operate there.

If you dont do this you will be shut down within months and face legal charges in many countries.

If FRAX provides you with any sort of partnership then we will also face these legal charges.

5

This is defined by the license itself, and we will have to comply with it.
All requirements will be carefully respected in order to acquire it.
Then, in the best case it results of a disclaimer and approval dialog on the dApp. Players will need to accept the terms and conditions.

Many crypto casino are already operating, nothing new here.