Juster, Baking Bad’s new DeFi project in Tezos

Baking Bad, a Tezos staking reward auditor has introduced a decentralized betting DeFi protocol called “Juster” on the Tezos blockchain network.

In an announcement on Wednesday, June 23rd, Baking Bad said that a beta launch of Juster would happen on Tezos this summer. The announcement reads:

“Proud to announce our new #DeFi project on #Tezos!

Juster is a decentralized protocol allowing to bet on crypto price dynamics or to become a bookmaker along with the professionals. Public beta this summer, check out the whitepaper and share your thoughts!”

What is Juster?

At its core, Juster is a decentralized betting protocol. The whitepaper describes the upcoming DeFi protocol as:

“Juster is an on-chain smart contract platform allowing users to take part in an automated betting market by creating events, providing liquidity to them, and making bets.”

The platform will anyone to create and make bets on crypto pairs price changes in a certain time interval. For example, someone can create an event such as XTZ/USD price will rise by 10% or more in the following week, or the ETHUSD price will decrease in the next hour. All these betting events will be powered by oracle data feeds. Juster whitepaper hints about using Chainlink as an oracle service.

Betting

Every event on Juster will have two outcomes. If the event ends as it was created, it is a positive or S event, otherwise, it is a negative or S/ ( actual symbol is S with overbar) event. In general, the Juster Core protocol can be implemented for any market where events can be defined to have two possible outcomes 𝑆 and. This means that betting events can not only be created for crypto pairs but any sports or political event.

Every betting event has four stages: creation, liquidity adding and betting period, measurement period, and withdrawing period.

If the user bets on S outcome, his funds go to the positive outcome liquidity pool, and if on S/ outcome, funds go to the negative outcome liquidity pool.

Providing liquidity

Any user can provide liquidity to the event during the providing and betting stage. The liquidity pools protocol is based on the proven “constant product Formula” used in well-known DEXs such as Uniswap and or Tezos-based QuipuSwap. Provided liquidity is shared between 𝑆 and 𝑆 pools in the 𝑟𝑎𝑡𝑒 proportion specified by the provider.

On Chain-Governance

Initially, all the variables of Juster protocol would be controlled by the manager to “check the service architecture’s stability and respond to possible potential problems as quickly as possible.” Once all is tested and running, the community will control all the variables of Juster via the JUSTER DAO token.

Furthermore, Juster will also feature a community-managed treasury. To support the platform and distribute profits between JUSTER DAO token holders, liquidity provider profits are reduced by some fee percent that will be in control of the DAO. DAO will withdraw some liquidity provider profits at the time when providers withdraw their liquidity after the event is closed. These funds will go to the treasury to define and grant future development of new features and linked services and other purposes.

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