👉Why Mint $ILP?
Minting $ILP offers several benefits to users. Since $ILP receives 90% of the house's profits (and losses) from the games, it provides an opportunity for users to earn a real yield in $USDT, $ETH, $WBTC or $IBET as passive income. With a provable fair house edge ranging from 1% to 5%, statistically, it's impossible for the house to lose over the long run.
Unlike other liquidity pool assets, $ILP is a single-sided asset that doesn't expose users to any impermanent loss (IL). Additionally, we have a max bet size to prevent a 'bank run' and ensure the stability of the platform.
As the TVL of $ILP increases, the platform can accommodate larger bet sizes, attracting whales for both $ILP and gambling and handling more users. Ultimately, $ILP offers a good way to earn real passive income on a stable coin - crushing leading DeFi protocols.
Understanding Max Bet Size
Maximizing player bets and balancing your investments is our main priority at InsanityBets. The max bet limit equation is designed to help you make the most of your investment while providing flexibility for high rollers and protecting our liquidity providers.
Our equation is simple:
Max Bet is the maximum bet amount that you can place on a particular game.
D stands for dollars in ILP, our liquidity token.
H represents the house edge, which is the percentage of the bet that the house keeps.
M is the maximum payout multiple, which is the maximum amount that a player can win on a given bet.
Here's an example: let's say you want to place a bet on a Hi Lo game with a 4.00% house edge and a maximum payout of 2.00x (because there’s a 50% chance of winning).
If there is $1 million worth of ILP in the pool, your max bet size would be:
Max Bet = (1,000,000 * 0.04) / 2
Max Bet = $20,000
But, if you changed the multiplier to be 10x, to only have a 10% chance of winning:
Max Bet = (1,000,000 * 0.04) / 10
Max Bet = $4,000
As you can see, changing the multiplier will change your max bet size, with only $20,000 out of the $1,000,000 in ILP at risk for this bet.
Using this equation ensures that our liquidity providers are protected while still allowing players to make large bets if they so choose. Plus, our equation is versatile, so it can be used for any game on our platform.
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