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Merge pull request #263 from Azuro-protocol/devrel1
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upd concepts
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Avvrik authored Oct 25, 2024
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34 changes: 17 additions & 17 deletions pages/concepts/_meta.json
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{
"overview": {
"title": "What Is Azuro?"
},
"the-azuro-vision": {
"title": "The Azuro Vision"
"title": "Mission & Vision"
},
"foreword": {
"title": "Foreword"
},
"the-azuro-protocol": {
"title": "The Azuro Protocol"
"introduction": {
"title": "Introduction"
},
"basic": {
"title": "Basic Concepts"
"how-azuro-works": {
"title": "How Azuro Works"
},
"protocol": {
"title": "Protocol Concepts"
"azur-token": {
"title": "🌊 $ AZUR token"
},
"roadmap": {
"title": "Roadmap"
"additional": {
"title": "Additional Info"
},
"azur": {
"title": "AZUR"
"go-defi": {
"title": "💧 Go DeFi"
},
"get-involved": {
"title": "Get Involved"
},
"airdrops": {
"title": "Airdrops"
},
"azuro-dao": {
"title": "Azuro DAO"
}
}
6 changes: 6 additions & 0 deletions pages/concepts/additional/_meta.json
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{
"faqs": "FAQs",
"landscape": "Competitive Landscape",
"brand-assets": "Brand Assets",
"glossary": "Glossary"
}
9 changes: 9 additions & 0 deletions pages/concepts/additional/brand-assets.mdx
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# Brand Assets

The Azuro brand revolves around three primary shades of blue, symbolizing trust and calm:

- Azuro Ocean
- Azuro Sky
- Azuro Dark

For accents and highlights, the Azuro Yellow is utilized. Black colors for background and texts should be avoided — use Azuro Dark for these purposes.
6 changes: 6 additions & 0 deletions pages/concepts/additional/faqs/_meta.json
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{
"general": "General",
"contracts": "Contracts",
"betting": "Betting",
"lping": "LP'ing"
}
23 changes: 23 additions & 0 deletions pages/concepts/additional/faqs/betting.mdx
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# Betting

## I want to bet. Wat do?

Go to the Azuro [app page](https://azuro.org/ecosystem). Find your preferred app, visit their interface, and bet!

## I don’t have crypto. Wat do?

Onramp via reputable CEXs like Binance or Coinbase. Else, you can onramp directly via Metamask, or through fiat onramp partners of the app that you’ve chosen.
Some apps support social-based authentication (login with Google / Facebook / etc.) as well as gasless transactions (no gas token required to place bets). Check with respective apps for specific implementation and user flow guide.

## I won my bet. How to redeem?

All bets on Azuro are direct interactions with the smart contract. The app that you’re using should have a button for you to click and redeem your winnings. You will be initiating a smart contract transaction on click, which you should authorize to redeem your winnings.

## Bets take forever to resolve. Am I doomed?

On average, Azuro bets resolve within two hours of the event’s end time. If it’s been two hours since the event ended and your bets have not resolved, raise the issue on our Discord.

Data providers manage a lot of markets, so there might be times when their infrastructure can’t keep up with the load (especially considering the early stages of the Azuro project). But rest assured, your funds are safe — they are locked on smart contracts, not held by the data provider nor any other entity.



27 changes: 27 additions & 0 deletions pages/concepts/additional/faqs/contracts.mdx
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# Contracts

## What is LiquidityTree?

LiquidityTree is Azuro’s novel fund accounting system that tracks the balance changes of Virtual Funds across all prediction markets in real-time, block-by-block.

It forms the backbone of Azuro — facilitating open deposits and unrestricted withdrawals to/from the LP, setting capacity for each prediction market to draw or ‘book’ liquidity from the LP, etc.

## What is Reinforcement?

Reinforcement is a measure of the maximum potential loss that the singleton LP can suffer from a particular prediction market. It also represents the initial liquidity base upon creation of a prediction market, set by the responsible data provider with sell-side odds push authority.

## What is Virtual Fund?

Virtual Fund is a measure of virtual balances attributed to a prediction market. From the perspective of the singleton LP, the Virtual Fund balance of a prediction market corresponds to the amount of ‘booked’ liquidity that the prediction market draws upon from the LP.

## What is vAMM?

Virtual AMM (vAMM) is Azuro’s self-adjusting pricing mechanism on top of pushed sell-side odds from the data provider. Similar to conventional AMMs, vAMMs will shift the onchain odds of a prediction market depending on betting flows coming from bettors.

## How is protocol revenue distributed?

The protocol involves three actors when facilitating a bet: apps, LP, and the data provider.

Apps are entitled to 70% of all generated revenue serviced from their interface (subject to Spread Reward Cap). The singleton LP takes 20% of protocol revenue, while the data provider takes the remaining 10%. AzuroDAO currently does not take any protocol revenue.

Reward distribution percentages are not fixed. In the future, AzuroDAO will be able to turn on the fee switch and adjust the percentages across each protocol actor.
37 changes: 37 additions & 0 deletions pages/concepts/additional/faqs/general.mdx
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# General

## What is Azuro?

Azuro is a decentralized protocol for prediction markets. Unlike most of its industry peers, Azuro does not use the orderbook model as the mechanism underpinning its prediction markets, opting for a dynamic AMM-based approach under a singular concentrated liquidity pool model.

## How does Azuro compare to Stake.com?

Stake.com is a centralized betting platform that leverages crypto as a payment rail. When you bet on Stake.com, you’re entrusting your funds and the resolution of your bets to the management of Stake.com — similar to DraftKings, bet365, and other popular traditional betting platforms.

Azuro is simply a set of smart contracts that you interact with to place your bets. Your funds will only leave your possession at the moment of bet placement — you hold your own crypto, secured by your own private key.

Events are resolved by the data provider, while AzuroDAO acts as the arbiter of last resort in case of disputes. Data providers are unable to cherry-pick resolutions for each betting slip — if an event is resolved as YES, all YES bets on that event will immediately resolve to TRUE. This protects bettors from discriminatory resolutions on select huge wins or parlays, an occurrence that has always been a problem in the traditional betting industry.

In addition, since voting power is determined based on AZUR staked amount and its staking duration, AzuroDAO will largely consist of long-term AZUR stakers that are aligned with the success of the protocol. This mostly ensures that by virtue of sheer game-theory, last resort resolutions that are presided over by AzuroDAO will always be truthful and non-arbitrary.

## How does Azuro compare to Polymarket?

Polymarket is a prediction markets platform based on the CLOB model. Individual markets are created by the team, and liquidity on each market is supplied by a combination of Polymarket’s designated market-makers and user-incentivized top-of-book orders. Bets are placed via the canonical Polymarket interface, and the aggregation of bets form Polymarket’s view on an event’s probabilities.

Azuro is a protocol for prediction markets, utilizing a singleton LP model. Azuro markets are hosted by the data provider, who pushes sell-side odds for bettors to bet against. Liquidity is drawn from the unified singleton LP, powered by LiquidityTree. Bettors move sell-side odds with their betting flows (buy-side odds), and the resulting onchain odds reflect Azuro’s view on an event’s probabilities. Azuro’s singleton LP profits if the applied spread from the data provider’s sell-side odds is more than the degree of mispricing that is exploited onchain by bettor flows.

Azuro’s use of data providers as benevolent sophisticated entities (elected by AzuroDAO) allows Azuro prediction markets to cover fast-paced events with non-binary outcomes (i.e., sports), as well as markets with relatively niche interest (since liquidity is inherited from the singleton LP instead of needing to be separately bootstrapped for each prediction market).

Azuro does not maintain a canonical betting interface. Bettors place bets by choosing from one of Azuro’s third-party apps that are connected to the open-source protocol. This ensures that the protocol is able to scale access globally (as each app caters to their own respective localities, customs, and jurisdictional laws), while simultaneously removing the risk of having a single point-of-failure access point.

## How is Azuro able to offer the best odds in the industry?

Custodial betting platforms incur the overhead of developing and maintaining the infrastructure needed to custody user funds, as well as investing in security practices for hack or breach prevention. This is still not including costly time-consuming compliance that comes with running a custodial business that takes custody of user funds.

By implementing all betting logic in form of smart contracts, we eliminate the need for such overhead. Data providers are merely software service providers, liquidity is sourced from the free market, and smart contracts run autonomously onchain — this allows Azuro to pass on cost savings directly to bettors, mainly in form of better odds and lower spreads.

## What is Azuroscan?

Azuroscan is a non-betting interface geared towards information-curious viewers. It indexes rich onchain data that is generated from using the protocol, and displays such data in an easy-to-digest format to casual non-betting viewers.

We aim to have Azuroscan to be the gateway for people to search and discover the real-time probabilities of various world events, powered by Azuro prediction markets driven by onchain activity and betting volume.
21 changes: 21 additions & 0 deletions pages/concepts/additional/faqs/lping.mdx
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# LP'ing

## I want to LP. Wat do?

Head over to [Azuro Portal](http://app.azuro.org/). Find your preferred pool (split by token and chain). Click deposit.

## How is the displayed APY calculated?

It is based on the pool’s historical performance. This is why you’ll see different pools showing different yields, as it is dependent on the pool’s own supplied amount of liquidity as well as the performance of bettors where the pool is the counterparty.

Past performance doesn’t indicate future results.

## Why is my LP position showing negative?

All new deposits experience an initial negative skew. This is to counteract attempts to game the system. Most LP positions return a positive yield within a month’s time.

However, there’s a non-zero likelihood that the pool could experience extended bettor performance, which may prolong the time of which your position will be in the red.

Although withdrawals can be made at any point past the initial 7-day lock period, we recommend depositing liquidity to the LP only if you have a long time horizon (more than 3 months). We cannot guarantee profitability on your LP position — DYOR and ape responsibly!


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15 changes: 15 additions & 0 deletions pages/concepts/additional/landscape.mdx
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# Competitive Landscape

| Text | Polymarket | Drift BET | SX Network | Stake.com / Rollbit / Shuffle | **Azuro** |
|----------------------------------|-----------------------------------|---------------------------------|-------------------------------|-------------------------------|-------------------------------------|
| **Market types** | Politics, exotic, prices, sports | Politics, exotic, sports | Sports, casino, prices, exotic, politics | Casino, sports | ***Sports, politics, exotic*** |
| **Business model** | B2C | B2C | B2B2C | B2C | ***B2B2C*** |
| **Deployment** | Polygon | Solana | SX Chain | Offchain | ***Polygon, Gnosis, Chiliz*** |
| **Custody model** | Non-custodial | Non-custodial | Non-custodial | Custodial | ***Non-custodial*** |
| **Access model** | Singular interface | Singular interface | Singular interface | Singular interface | ***Multiple interfaces*** |
| **Betting flow** | Peer-to-peer | Peer-to-peer | Peer-to-peer | Centralized | ***Peer-to-pool*** |
| **Market creation** | Centralized | Centralized | Permissionless | Centralized | ***Permissionless*** |
| **Mechanism design** | CLOB | CLOB | CLOB | Proprietary | ***vAMM*** |
| **Primary liquidity source** | Centralized market-makers | Centralized market-makers | Public liquidity\* | Proprietary | ***Public liquidity*** |
| **Liquidity provision** | Active | Active | Active | Proprietary | ***Passive*** |
| **Resolution process** | UMA, Polymarket | Drift security council | Market creator, chain validators | Internal | ***Data provider, AzuroDAO*** |
5 changes: 5 additions & 0 deletions pages/concepts/azur-token/_meta.json
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{
"overview": "Tokenomics",
"redacted": "[redacted]",
"azuro-dao": "AzuroDAO"
}
17 changes: 17 additions & 0 deletions pages/concepts/azur-token/azuro-dao.mdx
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import { PageHeadline, Image, Callout } from 'components'

# AzuroDAO

AzuroDAO is the protocol’s decentralized autonomous organization, with the mandate of safeguarding smart contract functions and ensuring the protocol’s continual going-concern. In contracts infrastructure, AzuroDAO is the owner of the Factory contract to which a part of the profit share is credited by LP after the completion of each Condition.

In the context of Azuro prediction markets, AzuroDAO plays a critical role of being the arbiter of last resort for disputed event resolutions, as well as to elect qualified data providers into the set. Decisions are congregated and made via onchain voting, where voting power corresponds the amount of staked AZUR and staking duration, specified under vsAZUR tokenomics.

As the project scales to steady-state, expect more features to be enshrined into the protocol. AzuroDAO will form the governance backbone of all these features — exact specifications to be disclosed closer to each feature’s release.

<Callout type="info">
The Schelling point token of AzuroDAO will always be AZUR. There will not be another token for the protocol — in the past, present, or future.
</Callout>

## Become a contributor

We are excited to welcome new contributors to Azuro. You can submit your application via this link → https://azuro.typeform.com/contribute
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import { PageHeadline, Image, Callout } from 'components'

# Distribution & Vesting Schedule
# Tokenomics

| Property | Details |
| --- | --- |
| Ticker | AZUR |
| Token Standard | ERC-20 |
| Contract Address | 0x9E6be44cC1236eEf7e1f197418592D363BedCd5A |
| Total Supply | 1 billion |
| Initial Circulating Supply | 152 million |
| DEX | Uniswap V3 |
| DEX Pair | AZUR/ETH |

## Distribution

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## Vesting Schedule


<Image
src="/images/concepts/vesting.png"
width={2000}
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3 changes: 3 additions & 0 deletions pages/concepts/azur-token/redacted/_meta.json
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{
"overview": "What is [redacted]"
}
3 changes: 3 additions & 0 deletions pages/concepts/azur-token/redacted/overview.mdx
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# What is [redacted]

[redacted] is Azuro’s tokenized incentivization scheme, governed by AZUR stakers with apps as the primary beneficiary. The system aims to foster a thriving app-centric Azuro economy, where apps are rewarded based on their perceived merit to the protocol’s long-term success.
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