Paradox is a parimutuel betting protocol built on the Arbitrum blockchain to scale betting liquidity. It allows users to place bets using Roots in certain markets, particularly during the 2022 World Cup.
On-chain betting has not gained traction because existing protocols have not incentivized liquidity providers (LPs) effectively. Paradox uses a parimutuel pricing model that lowers the cost of providing liquidity and protects LPs from adverse selection bias in prediction markets. The goal of Paradox is to connect bettors rather than compete with them. The protocol distributes all of its 1% commission fee to earlier bettors and does not extract rent. Read more in the Paradox documentation or visit the Paradox app.