VaultBet is a decentralised betting exchange. An alternative to traditional bookmakers and centralised betting exchanges that allows participants to buy, sell and trade bets on sports prediction markets in a truly peer-to-peer, trustless and secure marketplace.
Building a Market Maker bot on VaultBet is the ideal way to generate long term profits in sports betting markets.
In this guide, we will run through the advantages and opportunities of market making and why VaultBet is the place to do it. You will also find developer documentation links to get you started on making your own bot!
House Edge: The Traditional Bookie’s Formula
Traditional bookmakers make a profit by setting odds that include a built-in margin, often referred to as the “vig” or "overround”, that in some markets can go as high as 30%. This edge allows traditional bookmakers to generate impressive profits consistently.
However, traditional bookmakers generate this profit in part as they set their odds unchallenged and engage in further market manipulation by banning winning bettors or limiting how much that can bet/cashout.
Good for them, bad for us.
VaultBet solves this issue by providing a fair and trustless marketplace for sports bets. Making profits betting on VaultBet is easier compared to traditional sportsbooks as you are not betting against a hostile counterparty but against other bettors or traders on an even playing field. You have a fair chance at beating the market!
Master The Market: Be The House On VaultBet
Building a market maker bot on VaultBet allows sports bettors to supercharge their trading and profits by automating the process. A market maker bot plugs directly into VaultBet’s backend and allows you to offer odds and take bets on a wide array of markets through programmatic trading running 24/7.
Market maker bots are designed to consistently provide liquidity to the market by offering odds on both sides of a bet. By doing so, the bot earns a profit on the spread between the ‘For’ and ‘Against’ odds and can accumulate significant profits over time due to the high volume of transactions.
With a market maker bot you are not just a bettor but a bookmaker.
This benefits VaultBet’s prediction markets as a whole. Competition between market makers/ traders creates the ‘price discovery’ process to keep the odds fair for bettors as well as provide deeper liquidity, all whilst VaultBet’s industry low commission of 2% allows Market Makers to make significant profit over time.
Why build on VaultBet?
VaultBet is built on the Internet Computer Protocol, the fastest and cheapest operating blockchain, ideal for market making. By generating orders fast, automated market making bots can promptly respond to changing markets & odds and provide liquidity to markets 24/7 as cost efficiently as possible.
Furthermore, VaultBet is non-custodial meaning your funds remain under your control throughout the betting process. Your funds and bets are fully managed by smart contracts and our sports prediction markets are resolved by calling a sports API directly through https outcalls from our smart contract canisters, thereby eliminating sources of failure and trust reliance.
Finally, whilst most betting exchanges charge huge fees for access to their API, VaultBet gives everyone access to its API for free. Anyone can build and earn on VaultBet!
MM NFT Holders
VaultBet Market Maker NFT Holders are able to use their NFT to pay 0 commission on all trades from their automated market making bot. Market Maker NFTs will also provide holders the right to make more calls to the VaultBet API than basic automated market making bots when limits are introduced.
Learn more about VaultBet’s NFT rewards and get your own Market Maker NFT here.
Getting Started
VaultBet has released clear documentation to help you build your trading bot. Visit our VaultBet API Documentation to get started!
Disclaimers
VaultBet encourages responsible gambling. Participation involves the use of virtual assets and cryptocurrencies and carries associated financial risks. Market Makers must be of legal age and understand that participation and gambling can lead to losses. Set limits, gamble responsibly, and seek professional help if needed.
Market making activities are undertaken as individual participants and are subject and governed by the terms and conditions of use of VaultBet. Each participant represents and warrants that they have read, understood, and agreed to abide by the T&Cs. Any individual who has not read or does not agree to these T&Cs is prohibited from participating in VaultBet’s activities as a market maker or otherwise.