A CosmWasm smart contract for parimutuel betting pools in which each pool is an AMM and sells ownership shares directly from its bonding curve.
PAMM stands for Parimutuel AMM. Each smart contract represents an interoperable group of two or more traditional AMMs. Each AMM creates a its own token and initializes it to a non-zero quote price. Users can then buy tokens directly from each market's bonding curve.
Once a user has bought tokens using the configured quote token (most likely, the blockchain's native coin), they may directly swap their tokens in one AMM for tokens in another within same the group (within the smart contract).
When developer-defined conditions are met, trading closes, and the markets are considered resolved. Upon resolution, one AMM is designated the winner. Any account with a positive balance in the winning market may claim their share of the smart contract's quote token balance, representing the net buy-in across all markets and traders. The size of ther claim is proportional to the size of their buy-in relative to all others.
There are multiple places where fees come into play. Each is separately configurable.
- Buy fee - applied when quote token is swapped into an AMM.
- Sell fee - applied when quote token is swapped out the AMM.
- Swap fee - applied when tokens from one AMM are swapped with another.
- Claim fee - applied when quote token winnings are claimed