How to provide liquidity

Backers are the liquidity providers who fund BeatPot's prize pool. By depositing WHYPE, you earn a share of ticket fees while supporting the raffle ecosystem.

What is a Backer?

A backer is someone who deposits WHYPE into the BeatPot vault. Your deposit:

• Funds the prize pool for player winnings

• Earns you approximately 10% of all ticket fees

• Is represented by BPLPT shares (BeatPot Liquidity Provider Token)

How It Works

When you deposit WHYPE, you receive BPLPT shares representing your portion of the vault. The value of these shares changes based on raffle outcomes:

• When the house wins (no player wins): Your shares increase in value because player entries flow into the vault

• When a player wins: Your shares decrease in value because the prize is paid from the vault

Over time, the fee income from ticket sales is designed to offset player wins and generate returns for backers.

Understanding share value

Think of it like owning a percentage of a pool. If the pool grows (from fees and house wins), your percentage is worth more. If the pool shrinks (from paying out winners), your percentage is worth less.

The exchange rate between WHYPE and BPLPT reflects this—it goes up when the vault profits and down when it pays out prizes.

Step-by-Step Guide

1

Connect Your Wallet

Visit the BeatPot app and connect your wallet to HyperEVM.

2

Navigate to the Backer Section

Find the "Provide Liquidity" or "Backer" section in the app.

3

Approve WHYPE (first time only)

If this is your first deposit, approve BeatPot to use your WHYPE tokens.

4

Deposit WHYPE

Follow the deposit steps to receive BPLPT shares.

1

Enter amount

Enter the amount of WHYPE you want to deposit.

2

Review exchange rate and shares

Review the current exchange rate and shares you'll receive.

3

Confirm transaction

Confirm the transaction in your wallet.

4

Receive BPLPT

Receive BPLPT shares in your wallet.

5

Track Your Position

After depositing, you can:

• View your BPLPT balance

• Check the current exchange rate

• See your estimated WHYPE value

• Monitor vault performance

Withdrawing Your Funds

Important: Withdrawals are not instant. You must request a withdrawal and wait for the current round to end before claiming.

How the Withdrawal Queue Works

1

Request Withdrawal

Submit a withdrawal request for some or all of your BPLPT shares.

2

Wait for Round End

Your request is queued until the current round completes.

3

Claim Your WHYPE

After the round ends, claim your WHYPE based on the final exchange rate.

This process ensures fair treatment of all backers and prevents withdrawal front-running before winner selection.

Withdrawal Steps

1

Go to withdrawal section

Go to the withdrawal section in the app.

2

Enter shares to withdraw

Enter how many BPLPT shares to withdraw.

3

Confirm request

Confirm the withdrawal request.

4

Wait for round end

Wait for the current round to end.

5

Claim WHYPE

Return to claim your WHYPE after the round completes.

Why the withdrawal delay?

The delay protects all backers from unfair behavior. Without it, someone could:

• Deposit right before a likely house win

• Withdraw right before a likely player win

By requiring withdrawals to process after the round ends, everyone shares equally in the outcome.

Earnings

As a backer, you earn from:

• Ticket fees: Approximately 10% of every ticket sold goes to backers proportional to their share of the vault

• House wins: When no player wins, their entry amounts stay in the vault

Your earnings compound automatically—they're reflected in the increasing exchange rate of your BPLPT shares.

Risks

Providing liquidity carries risks. Please read the Risks page to understand:

• Exchange rate can decrease if players win large prizes

• Smart contract risk

• Withdrawal timing considerations