17 Feb 2023
Arcadeum: The Future of Online Gaming
Arcadeum is a highly innovative and exciting platform representing online casinos' future. Its commitment to fairness, security, and transparency offers a superior gaming experience that is free from the traditional limitations and drawbacks of centralized platforms. Whether you're a seasoned gambler or a newcomer to online casinos, Arcadeum is a platform worth exploring.
Arcadeum (website) is an innovative-decentralized casino that operates entirely on the blockchain, making it fully self-custodial and providing a provably low and highly competitive house edge. This cutting-edge platform has been designed to offer players a safe, secure, and transparent gaming experience free from any third-party interference.
At the heart of the Arcadeum platform is a pool of liquidity that facilitates betting. Through this pool, depositors receive losses and payout wins, ensuring that all transactions are transparent and fair. This eliminates the need for traditional bookmakers or other intermediaries, providing players direct access to the betting pool.
One of the most critical features of Arcadeum is its tailored API3 QRNG (Quantum Random Number Generator) integration, which ensures that all random number generation is verifiably fair. This means that the outcome of each bet is determined by a truly random process, with no possibility of manipulation or cheating. This is a crucial aspect of any online casino, as it ensures that players can trust that the games are fair and that the odds are not stacked against them.
In addition to its commitment to fair play, Arcadeum also offers a wide range of games and betting options to suit the preferences of all kinds of players. From classic table games like poker and blackjack to the latest slots and live dealer games, there's something for everyone on this platform. Players can also choose from various betting options, from small wagers to high-stakes bets, allowing them to tailor their experience to their preferences and risk tolerance.
Another key advantage of Arcadeum is its decentralized nature, which means that players don't need to worry about the security of their funds or the platform's integrity. All transactions are processed directly on the blockchain, which is highly secure and virtually impossible to hack. This gives players high confidence in the platform, which is essential for any online casino.
The platform is built on two pillars: creating an Uniswap of on-chain betting and providing a viable alternative to the current online betting ecosystem, which has long been plagued by organized crime, state-sponsored terrorism, and evil actors. The creators of Arcadeum believe that online betting should be a fun and exciting experience that connects people. However, they also think it should be as safe as possible without preventing users from managing their risk. This means that the platform prioritizes player safety and provides them with the necessary tools and resources to make informed decisions about their betting activities.
At the same time, the creators of Arcadeum recognize that it is not wrong for the “house” of an online betting platform to have an “edge” and be projected to turn a profit. However, they also believe the “house” should be public, solvent, and available to any liquidity provider, including the players. This level of transparency ensures that the platform is fair and that players can trust the outcome of their games. Another important principle of Arcadeum is its commitment to creating a world where people can enjoy online betting without financially enabling human trafficking, forced labor, extreme worker exploitation, or predatory marketing. This is achieved through a community-driven approach that prioritizes transparency, decentralization, and censorship resistance.
Arcadeum's native utility token, ARC (short for Arcadeum Coin), plays an essential role in the ecosystem, serving as the primary medium of exchange and governance. Foremost, it's worth noting that there will only ever be a fixed supply of 10,000,000 ARC tokens. Regarding the distribution of ARC tokens, 3.5 million are allocated to the initial Arbitrum Uniswap V3 pool liquidity, 2 million are allocated to esARC incentives, and 2 million are allocated to pre-seed and seed rounds of vetted influencers and angel investors. The remaining 500,000 ARC tokens are distributed to funding partnership opportunities.
Several derivative tokens of ARC serve specific functions. For instance, staked ARC (sARC) is a variant of ARC that is staked and accrues a cut of the protocol's revenue. In contrast, burnt ARC (xARC) is a token offering a more significant revenue cut but is irreversibly burnt when converted. Finally, escrowed ARC (esARC) is an ARC token held in escrow and backed by one ARC token, accruing a slice of the protocol revenue. However, it takes a year to vest esARC tokens, and resetting the clock is necessary when unvesting more tokens before the current vesting period expires. Stakers of ARC and its derivatives earn 100% of the revenue from several sources, including ALP deposit and withdrawal fees, betting fees (of which 20% goes to the user's referrer if they have one set), and WETH accrued from ARC trading volume on Uniswap, with a 0.3% LP fee. Each derivative token has a different fee split breakdown, with xARC earning the largest share at 70%, while sARC and esARC each earn 15%.
ALP, or Arcadeum's LP Token, is a single-asset liquidity pool that allows users to earn rewards proportionally to their deposit. Unlike other liquidity pools that require users to provide a pair of tokens to the pool, ALP only requires users to deposit USDT. The pool's base asset is USDT, a popular stablecoin pegged to the US dollar, making it an ideal choice for users who want to minimize their exposure to volatility. Users can easily deposit USDT to the pool through Arcadeum's web interface, and there are no additional fees associated with the process.
Users deposit USDT to the pool, assuming linear risk/reward based on the pool size. For example, if a user deposits $100K to the collection, and the pool's total size reaches $1M, the user's position will be worth $110K if the pool climbs to $1.1M, resulting in a profit of $10K. Similarly, if the pool's total size falls to $900K, the user's position will be worth $90K, resulting in a loss of $10K. ALP's rewards are distributed proportionately to the amount of liquidity the user provides, with no additional fees or lockup periods. As more users deposit into the pool, the total size of the pool increases, which can lead to a higher return on investment for each user. Conversely, if users withdraw liquidity from the pool, the total size of the pool will decrease, which can lead to a lower return on investment for each user.
Arcadeum is a platform that offers a seamless experience for players who want to participate in games of chance with cryptocurrency. Specifically, Arcadeum supports USDT-denominated bets and pays out rewards in USDT. To ensure that everything runs smoothly, there are maximum bet limitations based on the maximum payout of each bet, the bet size, and the amount of USDT in the ALP, which functions as the “house.”
Before playing games, players must approve their USDT spend limit on a smart contract, which is necessary to ensure that they only accidentally bet what they intended. The platform also has a variety of games with different house edges and maximum payout multiples so that players can choose their preferred game.
The max bet equation is calculated based on the amount of USDT in the pool, the house edge, and the maximum payout multiple. The formula is max = (D * H) / (M - 1), where max is the maximum bet, D is the dollars in the ALP, H is the house edge, and M is the maximum payout multiple. This equation ensures that high rollers can still bet large amounts while protecting the interests of depositors in the ALP.
Once players have selected their game and made their bet, the betting process is a two-transaction synchronous and non-reentrant process. The first transaction is when the player initiates the chance by confirming the transaction prompt in their wallet that appears when they click the big green “Bet” button on the web interface. The second transaction is when the QRNG provider submits a transaction to fulfill the random number generation request submitted by the game's smart contract in the first transaction, which determines the outcome of the bet initiated by the player. Once this second transaction confirms, the game is complete.
Players pay gas for both the first and second transactions when they make their first transaction. Due to on-chain limitations, verifiably random numbers cannot be requested and generated within a single transaction, so this two-transaction process is necessary to ensure the integrity of the game.
Arcadeum prioritizes transparency and verifiable fairness. One of the critical aspects of ensuring transparency is to have a clear and auditable house edge, which is the percentage of each bet that goes to the house as profit. Many large off-chain centralized betting platforms claim verifiable randomness, but their cryptographic proofs are often obscure and not entirely free of potential backdoors. This means that there is no way of knowing for sure what the actual odds are or what the natural house edge is.
Arcadeum addresses this issue using a third-party random number generator provider called API3. API3 uses QRNG, which has been proven safer than older on-chain RNG methods like Pseudo-Random Number Generators (PNRG), used by RANDAO, Chainlink VRF, and others. In addition, unlike PNRG, QRNG is resistant to Sybil attacks, making it a more secure option for on-chain betting platforms.
On Arcadeum, every bet consists of two transactions. The first transaction is called the Request, initiated by the player, and requests one or more random numbers from the QRNG provider node. The second transaction is called the Callback, which fulfills the random numbers requested by the Request. The player pays for the Callback transaction in the Request transaction, and the QRNG provider charges no additional Callback fees. Only the designated QRNG provider can initiate the Callback, which can only be initiated once for every Request ID.
Due to on-chain limitations, random number generation cannot be securely and fairly done in the same block or the same transaction. Therefore, separating bets into two transactions ensures the process is secure and verifiably fair. In addition, Arcadeum has implemented tested safeguards against node malfunctions and accidental node re-entrance, ensuring the safety and reliability of the RNG process.
In addition to transparent house edges and verifiable randomness, Arcadeum ensures that its players approve their USDT spend limit on a smart contract before they can start playing games. The platform also imposes max bet limitations based on the max payout of each bet, the bet size, and the amount of USDT in the Arcadeum Liquidity Pool (ALP), which functions as the “house.” This helps to balance protection for ALP depositors with flexibility for high-rolling players and high-multiple chasers.
Arcadeum is an on-chain betting platform that offers transparent house edges and verifiably fair random number generation, making it a more trustworthy and secure player option. In addition, it uses a single-asset liquidity pool, where the USDT is the base asset, and allows liquidity providers to earn a proportional share of the house based on their deposits.
Players must first approve their USDT spend limit on a smart contract before they can start playing games. The platform has max bet limitations based on the max payout of each bet, the bet size, and the amount of USDT in the liquidity pool, which ensures that everything runs smoothly.
Bets are a two-transaction synchronous and non-reentrant process, and due to on-chain limitations, verifiably random numbers cannot be requested and generated within a single transaction. Therefore, Arcadeum uses API3 as its third-party RNG provider. The platform separates bets into two transactions: the Request, which initiates the random number request, and the Callback, which fulfills the Request.
Arcadeum is a promising on-chain betting platform that addresses some players' concerns about off-chain centralized platforms. Its use of transparent house edges and verifiably fair random number generation, combined with the security of the blockchain, make it an appealing option for players who prioritize trust and fairness. However, as with any betting platform, players should still exercise caution and manage their risk appropriately.
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