> For the complete documentation index, see [llms.txt](https://docs.paddlefi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paddlefi.com/paddle-battle/mechanics.md).

# Mechanics

<figure><img src="/files/VzR2eFSWbnAkwsakErr6" alt=""><figcaption></figcaption></figure>

Welcome to Paddle Battle! An on-chain trading game platform that allows users to wager various assets (such as ERC-20 tokens, Memecoins and soon NFTs!) to challenge others to a duel or accepting existing challenges.

Offering several exciting modes to play:

* Token Duels: Fast-Paced Betting Rounds
* Degen PvP: 1-1 Token Battles
* More in the pipeline

## **How to Start?**

1. **Connect Your Wallet** – Link your wallet and deposit the assets you want to use in battles.
2. **Deposit Your Stakes** – Any asset you deposit becomes part of your **duel balance**.

#### **Example:**

Alex deposits **100 USDT, 5 BERA, and 100 BITCOIN**. These now form his **duel balance**, allowing him to place wagers.

**Alex’s Duel Balance:**

* 100 USDT
* 5 BERA
* 100 BITCOIN

Now, he can **join existing battles** or **create duels** using any of these assets.

## Game Modes

### **1. Token Duel – Fast-Paced Betting Rounds**

A quick-fire battle mode where players bet on **predefined token matchups**.

**How It Works:**

* **Predefined Battle Pairs** – Paddle sets up default matchups (e.g., **BERA vs. SOL**) with:
  * **Stakes:** Users wager specified assets (e.g., BERA).
  * **Betting Window:** Open for **15 minutes**.
  * **Battle Duration:** Runs for **15 minutes**.
* **Wagering Phase:** Players bet any amount from their balance on either side.
* **Battle Phase:** Once the wagering phase ends, the battle begins.

**Fees & Rewards:**

* **2.5% of the wagered amount** is deducted as a **gaming fee**, which is used for:
  * **Referral Rewards (Rebates)**
  * **$PADD Stakers**

**Winning & Payouts:**

* The side with the **higher price increase** wins and shares the total prize pool **proportionally**.
* This mechanic encourages players to **strategically balance both sides**, factoring in **expected value and game psychology** to bet on the side with fewer wagers for a higher potential return.

**Continuous Play:**

* A new **Token Duel** begins shortly after each round, ensuring **non-stop action**.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfljnutrXtZV3c40L6TWKOdJVqRt6kizp4HiMTtTMUty4C9SjfDL7jm9nCguWMe14iXeb3SUgFLhlVvKGPULxEHUEvV1dIi55sBIE1_1SWPjHMaxmD8JWxF89H_O0mxjaMltGrz-iuDTjLo9lo0NtIKlM-k?key=J2oFshAeCrEEUIpUqsBoOg" alt=""><figcaption></figcaption></figure>

### 2. Degen PvP – 1-on-1 Token Performance Battles (Coming Soon)

A **strategic** battle mode where players carefully select their **own token basket** to compete in head-to-head matchups, testing their market insights and decision-making skills.

### **How It Works**

**Creating a Duel - one** player sets up a duel by:

* Placing the **stake** (e.g., 100 USDT, 5 BERA, or 100 BITCOIN).
* Setting the **challenge window** (time for others to join).
* Specifying the **start time** and **duel duration** (e.g., 1 day or 1 week).

**Accepting the Duel -** Another player (e.g., Ben) accepts the challenge by **matching the exact stake**. Once accepted, the duel begins at the scheduled time.

**Gameplay Mechanics**

* Players **do not trade real assets**—instead, they use **paper money** to simulate market bets.
* Each player selects one **token or several tokens (customized basket) they believe will outperform** based on **price increase percentage**.
* Paddle pulls **real-time data** from **Oracles and CoinGecko API** to determine results.
* Once the duel starts, **2.5% of the wagered amount** is deducted as a **gaming fee**, which is used for:
  * **Referral Rewards (Rebates)**
  * **$PADD Stakers**

**Winning & Payouts**

* The player whose chosen token basket has the **highest price increase percentage** wins.
* The winner takes the **entire prize pool**.
* The loser forfeits their stake.

**Example:**

* Alex and Ben both stake **50 USDT**.
* If Ben wins, he receives **100 USDT - gaming fee**.
* Alex loses his 50 USDT, but any additional assets in his balance remain untouched.

**Alex's Remaining Balance:**

* **50 USDT**
* **5 BERA**
* **100 BITCOIN**

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdOOwAIbO_f0vxAOqHH0YIIoQoJjJsCBVYSGzquFT7aR3Qkeq_d2-ASn6jnSKhIu-TYoK9iQaYnCnvOdraQQtGW_uLL3vWxjcRg9PrWU47EeilQnJTIQPfezkNFzFvPMgPEMXH6jBGxs1Xj4iOFFccWvpQx?key=J2oFshAeCrEEUIpUqsBoOg" alt=""><figcaption></figcaption></figure>

## How to Exit?

If a player (e.g., Alex) wants to withdraw, they can do so at any time, withdrawing any amount from their balance.&#x20;

## The Use of Deposits

To maximize capital efficiency, Paddle integrates with **Dolomite, Aave, and other lending protocols** to generate additional yield from user deposits.

* A portion of deposited funds is allocated to lending protocols and yield aggregators, generating additional returns for traders.
* The percentage of funds supplied is dynamically adjusted in real-time based on:
  * Market conditions
  * Deposit and withdrawal activity
  * Liquidity demand on Paddle