Traditional lottery profoundly favours the game house except for the few winners. It is a winner takes all or the institution that runs the lottery smiling all the time.
Under no circumstances will participants gain anything unless they are the lucky winners. More so, they do not stand to gain any benefits, neither from any interest group nor their fellow participants.
Nevertheless, the Blockchain is disrupting this existing state, and the lottery industry is about to change forever. It is now a new era where people have so much incentive to be part of a lottery because they have nothing to lose, and even if luck is on their side, there is something to gain.
A Look At PoolTogether
Popularly known as “no-loss lottery,” PoolTogether is a dApp built on the Ethereum Blockchain. Making use of Smart Contracts, it has birthed one of the most effective instruments, for financial freedom.
Where it gets more exciting is the DeFi part that requires non-custodial wallets to play using the DAI stablecoin. Therefore, those who take part have control over their funds. The concept is an innovative means to stimulate saving money in a very fanciful fashion. Even those who despise lottery are bound to be attracted to PoolTogether.
By joining a pool, one gets a ‘Saving Ticket‘ which provides the chance to win in a weekly draw. The most delightful aspect is whether you win or lose, you get to keep your money. All the money from those who are participating in the lottery goes into the Compound Protocol (COMP). At the moment, borrowers pay 7.81 per cent to access funds on the COMP platform.
It is the interests of all the players that become the prize for the winner. Hence, Players only lose the earnings they could have received on their DAI deposit, but in return, they have a chance to win everyone’s weekly interest.
There is also what is called Sponsored Dai. It is when a Dai deposited in a pool is ineligible to win. In this scenario, the interest earned at the end of each pool goes to the winner.
Sponsored Dai comes from PoolTogether, Cryptocurrency companies and individuals interested in assisting in expanding the ecosystem. The concept is quite appealing to many savers since they do not have to risk their principal, and additionally, a substantial part of the pool emanates from sponsored. It is all about saving money as well as having the opportunity to win a prize. Absolutely nothing sounds better than this.
How To Participate
Individuals interested in playing PoolTogether can set up an account here. Every player needs an ERC20 token wallet like Web3 Wallet, Fortmatic, WalletConnect, Coinbase Wallet, Portis and Squarelink. The players deposit DAI into the pool to get tickets. Each ticket is a prospect to win the weekly prizes, and every one Dai deposit gets one entry ticket. Moreover, there are no restrictions concerning the withdrawal of savings and winnings at any point in time.
Winners are selected randomly using Smart Contracts. You can always check your account every Monday to know if you are the lucky winner. The administrators also notify winners via email if you have signed up for notification. Further, the system automatically converts winnings into tickets for the winner. These new tickets enhance your possibilities of winning again.
Quite frankly, the project is not a charity, and if you have been wondering how they make money running it, then it is a genuine doubt. It makes money through building more products backed by venture Capital like Consensys, IDEO and DTC Capital.
Audit And Security
The PoolTogether Smart Contract went through a review conducted by OpenZeppelin and Quantstamp. The two reputable entity has declared there was some risk because of the concentration of power in the Pool administration. However, they considered it low as users can control their funds at any time. PoolTogether has always maintained its goal is to migrate to a wholly decentralized governance standard in the future.
Besides, they allow public security bug bounties to encourage everyone to disclose anything they find wanting. Their Bounties are here on GitHub for anyone interested to check it out. Again, to guarantee transparency and verification for the general public, the project’s Smart Contract code publicly published as well as verifying the smart contracts on Etherscan.