Please describe your proposed solution

The betting protocol outlined in this proposal is composed of a decentralized parimutuel betting system and a federated bettor approval system which work together to allow users to place bets in a way which passes legal requirements and discourages negative behaviors without relying on a single centralized actor to verify those requirements.

The parimutuel betting system allows authorized bettors to place wagers against each other on the results of a contest as reported by a set of predetermined bookkeepers. The winning bettors receive shares of the total pot based on their contribution, minus a fee paid to the bookkeepers.

The federated bettor approval system is a series of smart contracts that handle contract execution permissions. This system will be one of the first implementations of the recently proposed X509 RBAC standard, and kept general & compartmentalized so it can easily be repurposed for use in other contracts.

We’ll be able to immediately showcase this inside a working Cardano game, Ascent: Rivals using Ascent’s in-game currency.

<https://youtu.be/YPYmep3Zx34>

Please define the positive impact your project will have on the wider Cardano community

By funding the work for this protocol through Catalyst, we can fund the development of the protocol without needing to rely on a traditional business model with all the conflict of interest that would bring. We’ll be able to provide a truly non-predatory system.

In addition, we anticipate opportunities to collaborate with other projects in the Cardano ecosystem which have developed oracle, streaming, and decentralized identity solutions. We’ll explore this possibility and follow through with the collaborations we think can benefit the ecosystem as a whole.

What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

As a team we have over 12 years of combined experience developing Cardano apps such as Hydra Auction, Grabbit, Discovery (aka Taste Test) and more, and have delivered on over a dozen Catalyst proposals.

What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Specification &amp; Design

Create &amp; document the design for the core (parimutuel) protocol, the generalized permissions contracts, and the federated approval system.

Milestone 2: Core Protocol &amp; Web Client Integration

Implement a simple parimutuel betting protocol without any complexities introduced for permissions &amp; approval. At this stage users will be able to use a prototype web client create betting pools, place wagers in these pools, and receive rewards if they win.

Milestone 3: Generalized Permissions

Create a generalized, compartmentalized open source permissions contract which can be easily referenced by any smart contract to minimize the permissions logic needed within the validator. Roles will be stored according to the X509 RBAC standard proposed recently by the Catalyst team: <https://github.com/cardano-foundation/CIPs/pull/811>, and accessible onchain with a witness validator.

Final Milestone: Federated Approval System &amp; Integration with Ascent

Integrate the generalized permissions system into the core protocol with a federated system for validating legal requirements and other safeguards. We’ll be able to see a working version inside the web client, directly wagering real in-game currency. Also includes documentation around participating as a federated approver.

Who is in the project team and what are their roles?

Michael Yagi - Product Owner

Design &amp; Smart Contracts:

• George Flerovsky
• Cliff Garvis
• Sam Delaney

Ascent Integration

• Eric Phan
• Steven George

Please provide a cost breakdown of the proposed work and resources

According to Crunchbase &amp; LinkedIn, the average global salary for a smart contract developer is $146,259 per year. The following calculations are based on that estimate.

Milestone 1: Specification &amp; Design

• 1 dev, 1 week = $3,047.06 / ₳8,705.89

Milestone 2: Core Protocol

• 1 dev, 6 weeks = $15,235.30 / ₳43,529.43

Milestone 3: Generalized Permissions

• 1 dev, 6 weeks = $15,235.30 / ₳43,529.43

Milestone 4: Federated Approval System &amp; Integration with Ascent

• 1 dev, 2 months = $24,376.48 / ₳69,647.09

TOTAL AMOUNT

• 1 dev, 21 weeks = $63,988.26 / ₳182,823.60

The USD/ADA exchange rate reflects the average rate over the past few months, conservatively discounted down to 0.35 USD/ADA to allow the project to remain viable despite potential price shocks that may occur after proposal submission and during the project timeline.

No dependencies.

How does the cost of the project represent value for money for the Cardano ecosystem?

This proposal will result in 3 distinct open source contracts - a complete ecosystem for betting, as well as two more generalized suites of contracts (the core protocol &amp; generalized permissions contracts). We’ve structured the proposal this way to be efficient in how we work, thereby requiring fewer funds for the relative impact.

By providing a non-predatory betting system, we will provide the ecosystem with the tools to attract users &amp; increase volume, without dragging down the ecosystem by harming those users. In addition, the generalized permissions contracts will allow for smaller script sizes and less development time for any project that wants to include a robust permissions system in their contracts.

Finally, we’ll be building a base on which a variety of projects in the ecosystem can build to improve their own products and adoption, and immediately driving adoption ourselves by integrating it into one of the most promising games on Cardano.