Various revenue streams for LunaFi/ Lunabets users
In Defi the value of the ecosystem is accrued in the token. LunaFi's ecosystem native currency, $LFI, is intended to be an integral element of its provisioning, from collecting fees to encouraging effective governance for all platform users. In this case, $LFI is a utility token as it allows users to perform certain functions. The appreciation and depreciation of the token will consequently be influenced by changes in demand and platform usage. To ensure sufficient decentralization the token is distributed fairly to the community. This is managed by incentivising users to complete certain functions. It is important that the protocol is sufficiently decentralized in order to avoid attacks. Rather than only making a return on waged bets like with centralized bookies, LunaFi users can profit from using the platform in many different ways.
Staking - Voting and Securing the protocol:
In order to participate in voting on proposals for ecosystem improvements, $LFI must be staked. In return delegators will receive vLFI tokens that represent their position in the LFI pool and their stake in DAO governance. The locked $LFI is also used as a mitigation tool in case there is a deficit of funds in the House Pool. By taking on this added risk they are subject to $LFI rewards. When withdrawing staked $LFI, there is a cooldown period of 10 days to safeguard the platform from attacks.
Providing liquidity for House Pools:
House Pools are incentivised for 36 months. Providing liquidity in ETH, BTC or USDC, within this time frame, ensures rewards in $LFI. Rewards are subject to a vesting schedule. Furthermore, House Pool tokens can be staked into LunaFi in return for more $LFI token rewards. The primary source of income for LPs comes from profits made from lost bets within these House Pools. The share of the profits received depends on the number of House Pool tokens a user gets from locking tokens within the pool. House Pool tokens represent the share of overall liquidity provided by an investor within a pool.
Bet Mining rewards:
In order to further distribute ownership of the platform to users Lunabets enrolls users from day one in a Bet Mining cashback promotion. The house edge represents the average gross profit that book makers can reliably make from a bet. Cashbacks work by rewarding users with a percentage of the house edge. This percentage starts at 10% of the house edge and then increases as the user reaches certain wager milestones. Cashbacks are paid instantly to user wallets in $LFI.
