Azuro is the on-chain predictions layer. It consists of modular tooling, oracle, and liquidity solutions for EVM chains to host powerful prediction and gaming apps. With its infrastructure layer approach, Azuro makes on-chain predictions and gaming portable and composable for dozens of apps working on top of it. Azuro allows anyone to engage and monetize users by building apps and integrations quickly, permissionlessly, and with zero upfront or running costs.

Interview with Rossen Yordanov, Azuro core contributor

We spoke to Azuro core contributor Rossen Yordanov about Azuro’s mission, their development challenges, and visions for the future. We also asked him about the interest Azuro has commanded among notable VCs and his advice for newcomers.

We’d like to thank Rossen Yordanov for taking the time to answer our questions and share his perspective on why prediction markets and blockchain technology are a natural fit. Without further ado, let’s go ahead with the interview.

1. Could you tell us about your personal path in the crypto field and how you became involved with Azuro development?

I jumped into crypto back in 2017. A couple of my friends were poker players, and they started flipping ICOs. Naturally, I had to get in on the action. Made some cash, lost it all when the market tanked, classic story. But my curiosity stuck around. Ended up leading crypto development at a big multinational payments company. We rolled out crypto trading in our apps by 2018, way ahead of the curve, and became one of Coinbase's top institutional clients in EMEA.

But I wanted more than just dabbling in CeFi. By 2021, I was itching for something deeper in the crypto world. So, when the chance came, I ditched my cushy corporate gig and dove headfirst into serious on-chain development with Azuro.

2. Why do you think prediction markets and crypto recently became so connected?

The answer here is quite simple—it’s time. Prediction markets were all the rage in 2017. One of the three main primitives in the ETH whitepaper. And then—ghost town, seemingly forever. But not anymore.

Polymarket has made peer-to-peer prediction markets work for the biggest social events like the US election. It’s taken them six years. They even got funded by Vitalik, as recently announced, and they’ll keep going. It’s one of the first wide-market signals of what’s coming. And Azuro is making peer-to-pool prediction markets work. That was thought impossible just two years ago. Sports markets. Onchain. With passive liquidity. All liquid, priced, resolved, and settled on Azuro. Sports have been the prediction markets’ holy grail since day one, actually.

Using EVM-compatible blockchains finally provides the needed infrastructure. Azuro has already shown it can thrive on these platforms, becoming the fastest-growing protocol and leading in revenue for months. This broad compatibility ensures seamless scalability and security, allowing Azuro to integrate into diverse ecosystems and drive blockchain-based prediction market adoption.

3. Tell us more about your personal vision of Azuro protocol and the main problems it solves.

Azuro is all about making prediction markets simple and accessible. It's an on-chain protocol that provides advanced tools, oracle solutions, and a unique liquidity model. Developers can whip up apps quickly without any upfront costs. Think of it like a Lego set for prediction markets—you just snap the pieces together and you've got a business in hours instead of months.

Azuro tackles the big challenges of traditional prediction markets by being fully permissionless and secured by smart contracts. This means no gatekeepers and no hassles, just a smooth, secure way to build and participate in prediction markets. We are breaking down barriers and making the whole process efficient and transparent. It might sound cliche, I know, but it’s true.

4. Tell us more about the key data and numbers we should know about Azuro.

The protocol has been on a constant growth path since launch. To date, we support 28 user-facing applications. Out of these, 5 apps have pulled in their own revenue exceeding $100,000, with the top app raking in over $2 million. The protocol itself has hit a total predictions volume of over $377 million, with 28,000+ unique users coming from Azuro-run applications.

Azuro has processed a whopping 5M transactions, with 400K+ transactions just in the last month. Football and basketball dominate the sports prediction volumes, making up for nearly 70% and 19%, respectively, which matches global sports prediction market trends.

5. What do you think are the main features and functionality that make Azuro stand-alone? 

One of the biggest hurdles we tackled at Azuro is liquidity. We came up with a peer-to-pool model that smartly allocates liquidity across various markets without putting LPs at risk. LPs don't have to manually create markets or take on specific risks anymore.

Azuro runs completely permissionless, with all transactions and market activities handled by smart contracts. This means total transparency for everyone involved, from LPs to end users. The peer-to-pool model is not just a great innovation for liquidity providers, it also expands the possibilities of what can be predicted overall. 

By default, prediction markets relied upon a peer-to-peer model, meaning that you need counterparty liquidity to place a bet on a specific scenario. That’s incredibly limiting, as you might not find organic liquidity for all events. Azuro solves that through the peer-to-pool model, which can seamlessly allocate resources where needed. 

Moreover, Azuro can roll with any EVM-compatible blockchain. We’ve already integrated with networks that get the on-chain prediction market game. Since its integration, Azuro has become one of the fastest movers on Gnosis and a multi-month revenue champ on Polygon PoS. We recently added support for Chiliz Chain, so we’re waiting to see how that plays out.

6. This April, Azuro raised 11M from notable VCs. Tell us how you plan to use these raised funds.

Yeah, this April we announced an $11M raise, and we’ve got some heavy hitters backing us like SevenX Ventures, Fenbushi Capital, Arrington Capital, Polymorphic Capital, Red Beard Ventures, Dewhales, and G1 Ventures. A lot of these guys have been with us since the seed round, so it’s awesome to see their ongoing support as we gear up for big milestones ahead.

We’re planning to use these funds to turbocharge ecosystem development and expand Azuro’s offerings. There are still tons of untapped niches in the predictions industry that could bring in major revenue streams for Azuro-run businesses. 

7. What future do you think expects prediction markets in the next 5 years?

There are three major trends converging that will supercharge the protocol that dominates on-chain prediction markets. First, the need for open access, freedom, and certainty of ownership, which is at the heart of crypto, is especially crucial in gambling, where players have been burned by operators limiting, banning, and withholding funds.

Second, there's a natural trend towards business fragmentation as barriers to entry drop. This democratization of tech is something we're seeing everywhere, from media to prediction markets. Just like how influencers now have their own brands and platforms, we're going to see them launching their own apps. It's becoming way too easy to set up shop.

Lastly, the affiliate industry, which drives user acquisition in traditional gambling, is hungry for transparency and fairness. On-chain solutions will finally give them the certainty they've been craving, making it easier than ever to start their own operations. So, if one word can describe my vision for the next five years is “transformative.”

8. The first advice you’d give to prediction markets and Azuro newcomers.

First off, jump in by putting a deposit in the Azuro liquidity pool. It’s a win-win: you support our ecosystem by providing liquidity for prediction markets, and you earn a sweet APR on stablecoins. Next, consider building an app on top of the Azuro protocol. This hands-on experience will give you a broader perspective and understanding of prediction markets, while you tap into our infrastructure. Success cases are out there, and I don’t think they are a matter of luck. There’s tangible opportunity in this market. As mentioned, our top app is already pulling $2 million in revenue. So, just dive in and start making moves.

We’d like to thank Rossen for taking the time to answer our questions and share his perspective on why prediction markets and blockchain technology are a natural fit. Without further ado, let’s go ahead with the interview. We wish good luck to Azuro in their development journey. If you are interested in learning more about Azuro protocol, navigate to https://azuro.org and join https://x.com/azuroprotocol.