Preface
The online sports betting sector has continually evolved, yet it lacked a key element until now: a true technological innovation capable of transforming the bettor’s experience. The emergence of LEVR, the first Leveraged Sports Book Exchange (SBEX), marks a historic turning point. This revolution draws its strength from the strategic partnership with the cryptocurrency Monad, accessible on X.com/@monad_xyz and through the official website https://monad.xyz. By combining the decentralized universe, the flexibility of decentralized finance (DeFi), and Monad’s technical expertise, LEVR offers a unique sports betting experience that is both intuitive for novices and sophisticated for experts.

Below, we will analyze LEVR’s overall architecture, its connection with the Monad cryptocurrency, how it integrates concepts such as data oracles, bet tokenization, order book trading, as well as its liquidation and risk management mechanisms. We will also detail the fee structure and leverage mechanics so that everyone—from curious beginners to seasoned experts—can thoroughly understand this new ecosystem.

Notes, definitions, and clarifications for this preface

• Cryptocurrency Monad (@monad_xyz, https://monad.xyz): Monad is a blockchain and cryptocurrency optimized to provide a performant, secure, and reliable environment for decentralized applications. It stands out for its speed, low fees, high transaction capacity, and tools that facilitate the development of DeFi and trading applications.
• DeFi (Decentralized Finance): An ecosystem of financial services (loans, borrowing, exchanges, insurance) operating on the blockchain without centralized intermediaries.
• SBEX (Sports Book Exchange): A sports betting platform that allows users to take long or short positions on the outcome of a game, similar to financial exchanges but applied to sports.
• Leverage: A mechanism that allows bettors to commit more capital than they actually possess, aiming to amplify potential gains. However, it also increases the risk of losses.

I. Introduction

1.1 Context of the online sports betting market

The online sports betting market has long relied on traditional models offering minimal technological innovations. Improvements have often been limited to slight fee reductions, enhanced transparency, or smoother transactions. Traditional platforms exhibit dispersed liquidity and low volumes, especially in niche markets. LEVR introduces a profound change by integrating blockchain technology and the Monad cryptocurrency to offer a decidedly innovative approach to sports betting.

Notes and definitions

• Liquidity: The ability to buy or sell an asset (in this case, a betting token) without significantly affecting its price. Higher liquidity means smoother transactions at fair prices.
• Niche markets: Less popular sports events that traditionally have lower betting volumes.

1.2 Presentation of LEVR

LEVR is the first leveraged sports betting platform (Leveraged Sports Book Exchange – SBEX). It leverages DeFi infrastructure and Monad’s fast execution capabilities to provide a reliable, transparent, and seamless environment. While other web3 platforms make minor improvements, LEVR innovates by allowing up to 5x leverage, thus offering new possibilities to bettors. The integration with the Monad network ensures rapid execution, minimal latency, and reduced transaction costs.

Notes and definitions

• 5x leverage: Investing 1 unit of personal capital and borrowing an additional 4 units. Gains on the initial investment are multiplied, but the risk of loss also increases.

1.3 Benefits for novices and experts

For newcomers, LEVR simplifies access to sports betting with a clear interface, detailed explanations, and the ability to purchase betting tokens directly. For experts, LEVR offers market depth, a variety of strategies (in-game trading, risk management through leverage), an order book, and data updated by reliable oracles. The use of the Monad cryptocurrency, designed for the DeFi universe, enhances the overall efficiency of the ecosystem.

II. The fundamentals of LEVR and its connection with Monad

2.1 The concept of tokenizing bets

Unlike traditional sports betting, LEVR tokenizes each betting position. Each token represents a choice (e.g., a team’s victory) and trades between 0 and 1 USDC. At the end of the game, winning tokens can be redeemed for 1 USDC, while losing tokens become worthless. This binary structure, similar to binary options, is conducive to trading, including during the game.

Notes and definitions

• Tokenization: The process of converting an asset or a right (in this case, a bet on a sports outcome) into a token on the blockchain, which can be easily traded.
• Binary option: A financial instrument whose final value is either 0 or a fixed amount, depending on a predefined event (here, a team’s victory or defeat).

2.2 Integration with Monad

LEVR relies on the Monad blockchain, accessible via @monad_xyz on X.com and https://monad.xyz. Monad provides a high-performance environment ideal for handling the substantial transaction flow related to betting token trading. With Monad, latency times are reduced, transaction costs (gas fees) are minimized, and liquidity can be optimized. This synergy allows LEVR to offer a smooth, secure, and financially attractive experience.

Notes and definitions

• Gas fees: Transaction costs on a blockchain, paid to validators who process and secure operations.
• High performance of the Monad blockchain: The network’s ability to handle a large number of transactions per second, reducing wait times and improving user experience.

III. Market operation: Pre-game, live-game, post-game

3.1 The pre-game market

LEVR opens a pre-game market up to 24 hours before the game starts. During this period, bettors purchase tokens representing their predictions (e.g., Team A’s victory). The price of these tokens reflects the market odds. Buying tokens during this phase is equivalent to taking a leveraged position, ranging from 2x to 5x, supported by the liquidity of an MVP Vault acting as the counterparty.

Notes and definitions

• MVP Vault: A liquidity reserve acting as the counterparty for pre-game bets. It is inspired by mechanisms used in DeFi platforms like GMX or Gains Network.
• Pre-game leverage: Tokens purchased already incorporate leverage. No liquidations occur during the pre-game phase.

3.2 The live-game market

When the game begins, the market transitions to the “live-game” phase. Previously purchased tokens can now be resold or bought on an order book between bettors, without issuing new tokens. Prices fluctuate rapidly based on the game’s progress, and liquidations may occur if a token’s value drops to a level that threatens the bettor’s margin. Here, Monad’s infrastructure allows for swift transaction processing, crucial during rapid odds movements.

Notes and definitions

• Order book: A list of buy and sell orders, displaying the quantity and price at which participants wish to trade tokens.
• Liquidation: Forced sale of a bettor’s position when their margin level (health factor) becomes insufficient to cover potential losses.

3.3 The post-game market

Once the game concludes, winning tokens can be exchanged for 1 USDC per unit, while losing tokens expire worthless. The MVP Vault pays out the winners, retaining the losers’ stakes to maintain ecosystem balance.

Notes and definitions

• Redemption: The final exchange of winning tokens for USDC.
• USDC (USD Coin): A stablecoin pegged to the US dollar, used as a value reference.

IV. Pricing mechanisms, oracles, and adjustments

4.1 Determining Initial Token Prices

Before the game, odds are sourced from major bookmakers (odds aggregators) via a data oracle (e.g., TheRundown). These odds are converted into token prices. Initial prices range between 0.20 USDC and 0.80 USDC, reflecting the perceived probability of a team’s victory.

Notes and definitions

• Data oracle: An external service providing reliable information about real-world events (scores, odds), enabling the blockchain to use them in smart contracts.
• Implied probability (odds): The probability derived from a bookmaker’s odds. For example, a token priced at 0.40 USDC indicates approximately a 40% chance of winning.

4.2 Adjustments during pre-game and market balance

If one side attracts too many bets, the Automated Market Maker (AMM) in the pre-game market readjusts prices and token availability to maintain balance. Monad provides a reliable infrastructure to manage these adjustments in real-time.

Notes and definitions

• AMM (Automated Market Maker): An algorithmic mechanism for providing liquidity and setting prices based on a mathematical formula rather than a traditional order book.

V. Risk management, liquidations, and health factor

5.1 Health factor and Liquidations

In the live-game phase, leverage introduces the risk of liquidation. LEVR implements a “health factor”: a bettor’s position must maintain at least 15% of the value of their reserved stake. If unfavorable price movements cause this margin to drop below 15%, liquidation is triggered, protecting the liquidity reserve (MVP Vault).

Notes and definitions

• Health factor: An indicator of the remaining safety margin on a leveraged position. If it falls below 15%, liquidation is enforced to protect the ecosystem.

5.2 Role of Monad in securing

Monad’s network speed enables instant liquidations, minimizing losses for the protocol and ensuring effective risk control mechanisms.

VI. Fee structure and vig

6.1 Vig and borrow fee

Unlike traditional sportsbooks that charge a margin (vig) of 5-10%, LEVR reduces this vig to 0-3%. The platform also introduces a “borrow fee” applied to leveraged positions, proportional to the actual match duration, encouraging bettors not to hold positions for too long. Additionally, a 1% transaction fee applies to both buyers and sellers during the live-game phase.

Notes and definitions

• Vig (vigorish): The margin taken by a bookmaker to ensure profit regardless of the bet outcome.
• Borrow fee: Fees charged based on the duration of holding a leveraged position, proportional to the actual in-game time.

6.2 Long-term balance

This fee model, supported by Monad’s performance, promotes stable protocol profitability while maintaining an optimal user experience. LEVR aims to progressively reduce vig in the long term, enhancing its attractiveness.

VII. Conclusion

LEVR, powered by the Monad blockchain (X.com/@monad_xyz, https://monad.xyz), inaugurates a new era for sports betting. Through the tokenization of bets, the dynamics of leverage, the transparency of DeFi, Monad’s speed, and the flexibility of a live order book, this platform redefines industry standards. Beginners will appreciate the simplicity and clarity of the mechanisms, while experts will find a rich universe of strategic opportunities, risk management, and yield optimization within LEVR.

In summary, LEVR, firmly anchored on Monad’s infrastructure, bridges the worlds of sports, DeFi, and cryptocurrency, paving the way for a truly revolutionary sports betting experience.

Notes and definitions for the conclusion

• Tokenization of bets: Converting betting positions into tradable tokens on the blockchain.
• Yield optimization: Strategies to maximize returns on investments while managing risks

Author: Yool