🏦Providing Liquidity for Overtime's AMMs
Stakers of the THALES token are eligible to Provide Liquidity for the Sports AMM and Parlay AMM and gain exposure to their performance.
User funds deposited in the Sports AMM and Parlay AMM will be used as collateral for all positions bought on the Overtime dapp. Liquidity Provisioning is available on both Optimism and Arbitrum.
How does LP-ing for Overtime's AMMs work?
You can see all the details for providing liquidity for the Sports AMM in TIP-99, and TIP-142 for details relating to the Parlay AMM, with an allowance update in TIP-140 and an update to withdrawal mechanics in TIP-136.
Allowance is based on THALES staked
Every THALES token staker will have a capped allowance on how much they can LP based on the amount of THALES token they are staking. The ratio between this allowance and amount of THALES staked will be controlled by a variable called:
This multiplier represents how much USD you are allowed to deposit into the AMM for each 1 THALES token staked.
Current stakedThalesMultiplier value - 0.2
This means the number of THALES you have staked divided by 5 is the number of USD you can provide in liquidity.
More THALES can always be staked to increase one's USD deposit allowance. You can follow this guide for steps to stake THALES on Optimism, and this one for staking THALES on Arbitrum.
You are not able to unstake your THALES while you are providing liquidity into the Sports AMM or Parlay AMM. If you wish to unstake your THALES you have to withdraw your funds first.
Deposit and Withdrawal mechanics
The deposited USD will be used to collateralize the Sports AMM and Parlay AMM on a weekly round basis. A single game market can only belong to one round, which is defined based on the maturity date of the market (game end). When a round ends, the AMM's performance from all markets in that round is summed up, and allocated to all liquidity providers proportional to their share of the pool.
Each LP-ing round lasts 7 days.
User can Deposit at any time during any round. The deposited funds will be utilized as collateral in Sports AMM and Parlay AMM starting with the next round from time of Depositing.
The minimum deposit is 100 USD for new depositors. Existing depositors are not subject to a minimum deposit
The maximum total deposit is 1,000,000 USD
A maximum of 200 users can enter the pool at one time.
The maximum amount of USD you can deposit is the number of your staked THALES divided by 5
Funds roll over to next round automatically until a Withdrawal is signaled.
User can signal a Withdrawal at any time during any round. Withdrawals are limited to no less than 10% of your total deposit.
The funds that are signaled for Withdrawal will be unlocked at the start of the next round from time of signaling.
If you signal a Withdrawal, your funds will still be exposed as collateral for the duration of the ongoing round and will only be removed as collateral when the round ends.
Providing liquidity exposes you to various risks including potential losses due to users winning in trading as well as smart contract security risks. Please make sure you understand these risks before depositing.
What's the difference between LP-ing for the Sports AMM and the Parlay AMM?
In the case of Overtime, funds deposited into the Sports AMM for liquidity provisioning are used to cover positions bought for individual sports markets so that successful traders can claim their winnings.
Collateral deposited into the Parlay AMM is used to hedge parlays created by traders. When a trader creates and purchases a parlay and the Parlay AMM calculates the total payout amount using individual odds from each position. It then creates a personal collateral pool which is equal to the total payout for the user’s collection of positions and uses it to purchase outcome tokens for the inverse implied probability of these positions.
For example, if I create a parlay with a HOME win for the Astros vs. Dodgers game, as well as AWAY win for the Bayern Munich vs. FC Augsburg match, then the Parlay AMM will purchase AWAY tokens for the Astros/Dodgers game, as well as DRAW and HOME tokens (since soccer matches can include DRAW outcomes) for the Bayern/Augsburg match.
Guide for Providing Liquidity for the Sports AMM and Parlay AMM
If you wish to start providing liquidity make sure you have sufficient THALES staked so you can provide the desired amount of collateral to LP.
Navigate to the Liquidity Pool page on the Overtime dapp:
➡️ https://overtimemarkets.xyz/#/liquidity-pool
Depositing USD to provide liquidity for the Sports AMM or Parlay AMM
Step 1: Connect your wallet and navigate to the LP page
Connect your wallet to the Overtime dapp on the top right corner of the page. Once connected navigate to the Provide Liquidity Page. Make sure the toggle is set to either "Single LP" or "Parlay LP" depending on your preference.
You can also reach each individually using these links
Step 2: Enter the amount of USD you wish to DEPOSIT
Your Max allowance of how much USD you can deposit is visible in the Total LP info card on the left of the page. Your allowance is calculated as following:
Step 3: Approve USD expenditure by clicking APPROVE
Step 4: Click on Deposit toggle and confirm the transaction
The time until the current round ends is listed on the left. You can use the GET THALES button to purchase THALES from Uniswap, and the STAKE THALES button to stake them.
You can view your current deposits from your Profile under the Vaults/LPs tab
Withdrawing USD from the Sports AMM or Parlay AMM
To withdraw, you must have USD deposited in the current round.
Step 1: Connect your wallet
Connect your wallet to the Overtime dapp on the top right corner of the page.
Step 2: Click on the REQUEST WITHDRAWAL button
Step 3: Wait for current round to end to receive your funds directly to your wallet
Once you've successfully requested a withdraw, you'll see the estimated amount you'll receive at the end of the current round in yellow. The actual amount you'll receive will be calculated once the current round closes and is based on the PnL of the round.
You cannot deposit when you have a pending withdrawal until the round has ended and you've received your deposit. Once the current rounds ends your collateral will be automatically sent to you.
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