The Treasury Fund uses a community-owned "liquidity pool" to fund the XLUNA casino. They are permissionless, transparent, and offer yield rewards to incentivize liquidity providers to keep their tokens in the pool after paying out winning stakes. The more tokens are provided as liquidity in the ecosystem, the smaller the risk, return differential, and emissions.
LPs deposited into the treasury fund provide liquidity to smart contracts. Casino pool profits are based on fixed pre-programmed margins, confirmed by oracles used to report results and generate odds probabilities, similar to the "margins" levied by traditional bookmakers.
This is critical when customers place bets. Liquidity in the casino pool ensures that users are paid instantly when winning a chance. In the worst case, this risk requires consideration of payouts when pooled funds are locked, preventing liquidity providers from withdrawing their stakes until all stakes have been paid out.
The XLUNA Casino Protocol will prevent casinos from accepting wagers that cannot be paid. The protocol's hard-coded rules ensure that the more profound the pool becomes, the larger the stake and the greater the rewards for liquidity providers.