What is Aver? An Aver Explainer
An introduction to what Aver is, and the problems it solves.
In this Medium Post, we cover what Aver is, what solutions it provides, and the future of the project.
What is Aver?
Aver is a universal liquidity and settlement protocol built on the Solana Blockchain.
The protocol enables the listing of peer-to-peer prediction markets and the exchange of betting positions without needing to trust the other side of the bet, or trust a company with your funds.
It is important to note that Aver is not a sportsbook or an operator — there is no ‘house’, ‘bookmaker’ or custodian involved.
What is a Blockchain Protocol?
A blockchain protocol is a program (or ‘smart contract’) that allows participants to execute actions without needing to trust one another or rely on any third-parties. For this reason, blockchain protocols are described as ‘decentralised’ and ‘trustless’.
Blockchain protocols ensure that data (for example, balances or betting positions) are recorded securely, are free from being corrupted and can only be changed when the appropriate authority and criteria are present (for example, a participant approving their funds to be sent).
How to Interact with the Aver Protocol?
There are many ways that participants can interact with the protocol — including programmatically through the blockchain, or through web applications like Aver Exchange:
Aver Exchange: The Web Application
It is important to understand the difference between the Aver Protocol and Aver Exchange - the application hosted on app.aver.exchange.
The application allows participants to quickly and easily trade positions on sports events, speculate on political, economic or current affairs markets and much more. It does this by interacting with the Aver protocol.
What makes Aver unique?
- It’s the first peer-to-peer betting and prediction exchange on Solana Mainnet
- Its extremely low costs compared to web2 exchanges
- Its super fast risk positions offset make collateral provision capital efficient
- It offers a range of incredible trading UIs customisable to suit DeFi users, expert bettors or complete beginners
- Participants only require a Solana compatible wallet, so there is no account setup
- Participants only require SOL and USDC to trade
- It’s non-custodial — participant’s are in full control of their assets
- Neither Aver, nor your peers, ever hold your funds — so there are no counterparty risks
- It’s permissionless — no account limiting or suspensions, and winners are always welcome
SDKs: Build on top of Aver Protocol
Aver provides open-source Software Development Kits (SDKs) and integration tools to anyone looking to build on top of the protocol. Now, anyone can play a part in shaping the future of peer-to-peer betting and prediction markets.
Get started with SDKs here.
Aver creates a universal environment where value can flow freely without restriction. To solve the problems that web2 prediction/betting platforms currently suffer from, this environment offers the following:
Liquidity in sports betting and prediction markets around the world is hugely fragmented, leading to poor value for participants and in many cases, inefficient markets. The reliance on slow, expensive and region-confined banking rails combined with withdrawal restrictions and waits of up to 72 hours to access your own funds means liquidity does not freely flow.
With Solana, value can move to anywhere around the globe in less than a second; and unused funds are immediately available in participant wallets — without any slow withdrawal request process.
A truly borderless liquidity pool can provide immense value. With the Aver protocol, and the Solana blockchain, it’s finally a real possibility.
Winners are Welcome
Winners deserve to win. However, the majority of today’s betting occurs in an environment where they’re punished for doing so. Web2 exchanges have been known to restrict or even shut down the accounts of those that win too often. Sometimes, withdrawals are frozen and user funds are stuck for long periods of time.
However, decentralised prediction and betting solutions built on Aver are corruption resistant and have no limits. This ensures that participants aren’t singled out or restricted just because they’re winning.
Self-custody, Instant Settlement and Transparency
Web2 exchanges rely on traditional banking rails, which have the following problems:
- Entirely reliant on third-parties — users do not have self-custody over their assets, and this often creates KYC requirements
- Lengthy settlement times
- Opaque or blackbox systems — all transactions are not transparent
However, Aver solves those problems by utilizing Solana’s frictionless payment rails which offer:
- A system without reliance on third-parties — users have self-custody over their assets, this means no KYC
- Quick/nearly instantaneous settlement
- A 100% transparent and secure system — all transactions are recorded on the public blockchain
The Future of Aver
Aver aims to be the global liquidity and settlement layer for sports betting and prediction market solutions. Aver’s SDKs will be the tools that contributors use to develop innovative applications for the technology, exciting ways to improve the protocol and new ways to trade on uncertain events.
As a result, a variety of front end applications for peer-to-peer prediction and betting markets will be able to tap into the borderless liquidity, open infrastructure and payment rails that Aver offers.