The problem All Or Nothing Bet solves

Crypto twitter features prominent members making bets with one another regarding topics like:

-> Will Uniswap V3 launch before Q1 2021
-> Will Yearn approve additional miniting of YFI
-> Will ETH market value surpass BTC in 2021

These bets are constructed in twitter threads and normally have 50% betting odds.

The problem with this behavior is two fold:

1. The bets are socially enforced, meaning it is possible for bettors to not pay up their bets.
2. The community cannot participate in the bet.

All Or Nothing Bet solves the 1st problem by locking in the bettors collateral on the ethereum blockchain. This means that once the two bettors have sent their collateral to the All Or Nothing Smart contracts, the bet is locked in. These initial bettors are guaranteed a payoff of 100% return on the committed collateral. In order words they win the other initial bettors collateral.

The second problem is solved by allowing community members to purchase tokens which represent a stake in a bet's outcome once the Bet has been locked in. These bets do not have the same payoff as the initial bettors, but rather they are competing for a share of community bettors who stake on the opposite outcome.

The end result is two prominent crypto twitter users can lock their bets on the ethereum blockchain and the community can back the outcome they believe will happen.

Challenges we ran into

The first challenge we ran into was using the Conditional Token framework. The team had to learn how to use the ERC1155 standard. Thankfully due to dev docs and great tutorials this was overcome.

The second challenge was adapting the First Product Market Maker (FPMM) to facilaite the community bets. There were functions that used black box moon math and understanding this proved challenging. Late into the project we decided to scrap many of the FPMM functions and opt for simpler functions.