For an average person, without any knowledge of fundamentals of cryptocurrencies or its trading techniques, it's difficult to put your hard-earned money into this space.
Similarly, for gamblers, it's not easy to win big without putting all of their money at the risk of losing.
But what if, you get the benefit of both the worlds? I mean, if you can invest your money without any risk of losing it and also get free tickets in a lottery to win big, would you prefer it?
The other day, I was reading about this app called Pool Together. It gives you the best of both the worlds.
Pool Together is an Ethereum based app that enables a no-loss lottery game to promote savings habit among users. Users need to invest their money in the form of DAI stable coin.
DAI by Maker is a multi-collateralized stable coin with decentralized governance powerd by MKR. So I'd say it's quite safe to put a part of your saving in DAI without any risk of price fluctuations.
But without a risk of price fluctuation there is very little probability of any gains. De-Fi makes it possible to earn some interest for your investment in DAI. Pool Together game takes advantage of this interest-earning feature.
When you invest in Pool Together, it pools in the interest earned on total DAI investment of all useres in the pool and offer it as reward for its weekly lotteries to one lucky person in each draw.
You get 1 ticket for each DAI you hold in Pool Together. Pool Together doesn't take any cut from the interest. It doesn't make any profit out of this app.
In fact, it's interesting to note that several VCs and HNIs have invested their DAI as sponsored investment, meaning that they won't take any lottery prize for their investment. You can see that almost half of the total pool amount is made of sponsored DAI. Thus the prize money is almost doubled by this benevolence.
You can also check the odds of your winning for your investment (or total no. of tickets) at the time of buying tickets.
Recently they introduced another interesting feature to increase your odds of winning. But it will also decrease the price amount in that proportion. Essentially, it's sharing of rewards by grouping your tickets. Thus Pods feature will allow users to pool their lottery tickets and share the rewards.
Next week's prize pool is $224 at the time of writing this. I checked the odds for winning if I buy only 1 ticket i.e. 1 DAI or $1. Here is what was displayed:
Buying 1 tickets will give you a
1 in 401,276 chance of winning $224
Then I enabled the Pods to group my ticket and share the prize to increase the odds of my winning. Here is what I get:
Buying 1 tickets will give you a
1 in 7.43 chance of winning $0.004
Well, it sure increased the chances but the prize money is no more appealing. As a gambler, I'd like to go with my individual luck. No grouping of luck please 😂.
Also, you need not re-purchase your tickets after every draw. As long as you keep your money in the pool, you are automatically awarded tickets for the next lottery. And if you provide your email address, they will also intimate you over email when you win.
You can also withdraw your money whenver you wish as it is not locked.
They have got their smart contracts audited. Recently they were reviewed by Quantstamp & OpenZeppelin. However, they did observe some risk due to centralization of power in the Pool administrators but deemed it low as users can control their funds at anytime..
PoolTogether avers to move to a completely decentralized governance model in the future.
- So, have you ever won any lottery by PoolTogether?
- How long did it take for your investment to win? #JustAsking :)
I just checked up my treasure to put some in PoolTogether, but couldn't find any DAI in it.
I was not willing to buy any DAI in this smarket. Finally, I found a little over 5 DAI lying in my Publish0x wallet. So I thought to put it to some better use. It takes some days to withdraw from Publish0x. I hope I'll get those by this Monday. Then I'd start gambling with my $5. At least, I should have some skin in the game 🤣
How about you?