| id | Title | Status | Author | Description | Discussions to | Created |
|---|---|---|---|---|---|---|
| TIP-175 | Add dynamic liquidity to SportsAMM | Voted in | Danijel | Add dynamic liquidity to SportsAMM | 2023-10-02 |
This TIP proposes to introduce a dynamic liquidity concept to SportsAMM which means that liquidity will be higher the closer the game start is.
It is a usual concept across sport books that liquidity becomes higher and odds are sharper as we approach the start of a given game.
Usually games are created on Overtime 4-5 days before the kickoff, and our concept so far has been that liquidity is set statically from the moment the game is created.
This is definitely an imperfection, as its usually difficult to offer deep liquidity while listing games that much before a game kick-off.
I am therefore proposing an approach where the liquidity will dynamically increase as we approach the start of the game.
We will reuse the current approach of having liquidity configured per sport and market type, but we will add new variables to control how much of the maximum liquidity is used at which point in time.
Markets will now be created with the default liquidity being at 30% of max liquidity available for that market per previous configuration. This will remain active until we reach 48h to market/game start. In the last 48h the liquidity will linearly increase from 50% to 100% of legacy liquidity configuration.
As we expect the need for multiple changes and reconfigurations per different sports until we "get this right", pDAO will be allowed to change this exact configuration without additional TIPs.
- startingLiquidity = 0.5
- liquidityIncreaseKickoff = 48h
- dynamicLiquidityEnabledForSportX = TBD
the above variables are configurable per sport.
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