How Do We Earn

We do our due diligence and we choose the best methods to make your money in the most efficient manner.

We earn by a method called Decentralised Sports Arbitrage. This is the first time any protocol in the field of cryptocurrency and defi has used this concept to earn profits for its users. Our protocol’s bot called Star Finance Maker Bot (SMMB) scrutinises numerous bookmarks and sports and places the best and most profitable arbs out of millions of arbs combinations and possibilities.

Here is a detailed description on what all you need to know before you start arbitraging with Star Finance.

What is arbitrage?

Arbitrage, in theory is the exercise of buying and selling an asset simultaneously to take advantage of the price differences on two different exchanges and hence make profits out of those specific trades.

In order to perform an arbitrage, the arbitrageur buys the asset at a lower price and sells the same at a higher price, and the difference between the buying and selling price is the profit made by the arbitrage.

There are many examples of meathods of arbitrages available in economics, such as Pure Arbitrage, Risk Arbitrage, Covered Interest Arbitrage, Statistical Arbitrage, Covered Interest Arbitrage, Statistical Arbitrage, Convertible Arbitrage, Volatility Arbitrage, Futures Arbitrage, Merger Arbitrage, etc.

But we will only make use of Pure Arbitrage to make profits for our protocol.

Here is an example of Pure Arbitrage:

Alex buys 1 gram of 24 carat gold on exchange A for $55 a gram and sells it on exchange B where the price of gold is listed at $$55.5 per gram, hence making a profit of $0.50 on each gram of gold sold by him on exchange A.

What is Sports Arbitrage?

Sports arbitrage also known as betting arbitrage, is the practice of making profits by the help of sports.

In traditional arbitrage, the asset is bought at a lower price and sold at a higher price. The practice involved in sports arbitrage is quiet similar to the one involved in tradition asset arbitrage but here rather than taking the advantage of price differences of assets on different exchange, our software takes advantage of the discrepancies in the bookmaker’s odds on different betting exchanges.

The arbitrage our software executes is called Pure Sports Arbitrage.

Here is an example of Pure Sports Arbitrage:

For those that are unfamiliar with how betting odds work, odds of 2.00 indicate that if your bet is successful, you will receive 2.00 times that amount of money that you originally wagered on the bet. For example, if you wagered (staked) $100 on the outcome and were successful, you will receive $200 (your $100 stake plus $100 in winnings).

For an event where there are only two outcomes (win or loss), odds of 2.00 on each of the outcomes mean that there is an even (50%) chance of both outcomes occurring.

However, in reality, a bookmaker needs to have an edge to make money (they are a business after all!) so even if they thought that there was an even chance of both outcomes, they would set the odds to something like 1.90 for both outcomes.

If 2 punters decided to bet $100 on the 2 different outcomes, the bookmaker would receive $200 in staked bets, but only pay out $190 to the punter which won. They would profit the $10 difference. This is a 5% profit margin for the bookie ($10/$200 = 5%).

Considering that the bookmaker will always have a profit margin built into their odds, arbitrage opportunities are not possible by betting on all outcomes with a single bookmaker. The arbitrage opportunity exists between different bookmakers.

Tennis matches are a great example, as there are only two outcomes (Player 1 wins or Player 2 wins). It is not possible for a match to end in a draw.

Say that Roger Federer and Rafael Nadal were matched up in the final of the French Open. Nadal has a strong record on the clay so he is a hot favourite. However, different bookmakers have different opinions on just how much of a favourite he really is.

Each of the bookmakers have individually priced in a profit margin to their odds.

However, if we take the highest odds available for Nadal (1.29 @ Pinnacle) and the highest odds for Federer (4.70 @ Bet365) and bet on each of them with a very particular wager, it is possible to profit regardless of who wins.

By staking a total of $500 at both bookmakers, we have guaranteed ourselves a minimum win of $506.09, which is a profit of $6.09 (1.22%).

$6.09 might not sound like much but when you consider that you could use wager this money on a match occurring tomorrow and once the match is over, wager it again on another match occurring the following day, it’s clear that your winnings can quickly compound!

Much better than earning a few percent per year by leaving it in the bank!

How do we earn?

Star Finance’s sports arbitrage software A.K.A the Star Finance Maker Bot (SMMB) searches for odd discrepancies in different sporting events and places the bets automatically to make slight profits out of the bookmakers’ odds differences.

The SMMB scans over 41 ‘decentralised’ sports betting bookmakers’ and also scans over 16 official sports including Football, Cricket, American football, Hockey, Tennis, Table Tennis, Basketball, Baseball, Golf, Boxing (MMA), Badminton, etc.

The bot scans and scrutinises the exchanges and sports to search for the best possible arbitrage which can be performed to earn maximal profits.

This is how Star Finance earns for its users


Disclaimer:  Please invest on your own risk and invest what you can afford to lose.