The Chosen Ones

Do you still remember Gladitor Arena?

I'm at the moment editing it, I was wondering one thing: how should I make the damages.

Each league has 5 levels. Should the damage increase only by the difficulty you have chosen or also by the level of the gladiator arena?

1) If it's only based on difficulty, things are easier to balance.

With this way damages would go normal way, like this: 300/400/500/600. The damage doubles from Child's Play/Easy to Extreme.

2) If there's also Gladiator Arena Level included, the enemies will become stronger by every level.

It would go like this then: 300/400/500/600/700/800/900/1000/1100. Totally there would be 9 levels.

EASY = 1 "LEVEL"
NORMAL = 2 "LEVEL"
HARD = 3 "LEVEL"
EXTREME = 4 "LEVEL"

LVL 1 + EASY = LEVEL 2 = 400 dmg
LVL 5 + EXTREME = LEVEL 9 = 1100 dmg
LVL 1 + EXTREME = 5 = 700 dmg
LVL 5 + EASY = 6 = 800 dmg