DICE Launches a Bank on Their Platform! Heres Everything You Need to Know About It.
Decentralized applications on blockchains have brought to life fresh, new user experiences to online gambling where users can be individually rewarded. This model is definitely set to disrupt the gambling industry as a whole. Centralized casinos do have memberships and loyalty bonuses, however, as EOS is a 3rd Gen Blockchain with distinct tokenomics, transparency, and scalability at its center, this aspect brings forward a new generation of online businesses.
Dice, a social gaming platform based on eosio technology, just recently integrated a banking system in their platform! Yes, you heard that right. A bank on their platform. So any users looking to grow their wealth without gambling or trading now have another great platform to do so.
As of right now, only EOS and DICE deposits are accepted. The interest you receive is paid on a per token basis i.e if EOS is deposited in the bank, you’ll receive EOS on when users play with EOS and if you deposit DICE, you’ll receive interest in DICE when users play with it.
There are factors like volume and house edge for wagers which affect the interest you receive on a per token basis as well as the ratio of your deposit to the bankroll.
Interest received is paid from 50% of the theoretical net profit allocated currently for cost/bankroll. Staked DICE holders’ payouts will not be impacted by the bank. This ensures that the interest rate stays positive which leads to no risk as interest is paid on theoretical net profit and not actual net profit.
The amount of interest received for a particular token obviously depends on the ratio of how much you’ve deposited to the total bankroll for that particular token.
If we have a look at the chart below, we can visually see how tokens flow through the platform.
Basically, the more number of users using the platform, the more interest received or more volume for a particular token, the more interest received for that token.
Usually, nothing is perfect in this world, and black swan events could occur within a dapp ecosystem as well.
Hypothetically speaking, what if the house goes through a short-term loss and all users want to withdraw all their funds at the same time?
The house edge is always included in all games and that makes sure that the House always makes a profit. When you deposit funds into the platform you essentially are a ‘part’ of the house and are given a part of the profit. If you want to know more details, check out the article written by DICE here.
Overall having a bank seems like a great idea as another revenue sharing model is introduced into the DICE platform. There are a few reasons why.
If we look at the image above, the stats according to DappRadar shows us that DICE is the number one platform in the entire crypto space in terms of daily active users (2,900) as of 26th July 2019. These numbers would definitely bring confidence to investors/users as well as provide liquidity for the bank to sustain itself.
Liquidapps bringing free EOS accounts and the upcoming EOS 1.8 upgrade will play a huge factor in the mid to long term. With free EOS accounts and DAPPS having the ability to pay for users’ resources when using a dapp, the onboarding process for users to use the eosio blockchain is getting easier day by day. With DICE having such massive visibility within EOS ecosystem, it would come as no surprise as new users get acquainted with the bank DICE is offering further increasing the liquidity in the platform, therefore, increasing returns.
These justifications solidify as to why this model will prove to be a game-changer for DICE. if you have any further questions, you can chat directly with the DICE team on their Telegram Channel.
And as always guys, stay safe and don’t get rekt.
Use my Referral links to support my Blog:
EOS Name Service (get a 5% discount on purchasing EOS account names) — https://www.eosnameservice.io/?ref=illuminati.e
Bitcoin Donation Address: 3BAMAjM812NfTJp197HB5jE3b7QjydSRxm
Ethereum Donation Address: 0x9D08CE9b061014BcaAbb8E7b0bA40050eB35DF4b
Ripple (XRP) Donation Address: r3wiqBTo6rDB8gBsSuP9fYBnG28QfmKndZ
Litecoin Donation Address: MWdsozGe7hktPQMkoGb7Y62hi6bd6eYsdn
EOS Donation Address: illuminati.e
DISCLAIMER: This is not to be taken as financial advice. My views in this article are personal opinions based on my research and should not be considered as financial advice. Always do your own research.