All your questions answered about this DeFi-powered crypto lottery dapp
PoolTogether has become one of the leading DeFi dapps, and with its crypto lottery it offers one of the most sophisticated use-cases in Web3. Through PoolTogether everybody has a chance of winning the lottery, powered by on-chain transparency.
What is PoolTogether?
PoolTogether is a prize savings protocol combining elements of a lottery with DeFi principles. Every dollar someone deposits becomes another chance at winning the daily or weekly prize. PoolTogether has been around since 2020, and has distributed over $5 million in prize money. PoolTogether is accessible by anybody, and provably fair thanks to the transparency of the blockchain.
What’s the token for PoolTogether?
PoolTogether uses the POOL token as a reward, and for governance purposes. Every POOL token is one vote in the ecosystem, and holders vote on for example frequency of prizes, distribution of the treasury, budget requests and protocol upgrades.
Can I stake my POOL?
POOL holders can deposit their tokens to enable voting without transaction fees. They can also delegate their vote to other representatives in the community.
Which blockchains does PoolTogether support?
PoolTogether supports Ethereum, Optimism, Avalanche and Polygon. Future additions to their offering depend on governance decisions.
Which blockchains does PoolTogether support?
PoolTogether supports Ethereum, Optimism, Avalanche and Polygon. Future additions to their offering depend on governance decisions.
Where does the prize money come from?
PoolTogether earns interest on the deposited funds. The DeFi lottery dapp earns yield over the deposits, and distributes the yield randomly as prizes to the users. The more people join, the bigger the prize pool will be.
Can I lose money?
Nobody has access to the funds you deposit inside PoolTogether. The platform is non-custodial, meaning that users can redeem their money from the pool at any time. The deposited tokens can lose some of their value though, based on market fluctuations. However, smart contracts are targeted by hackers and therefore there are always risks involved.
How are winners chosen for PoolTogether?
PoolTogether relies on Chainlink VRF to randomly pick the winners. Chainlink ensures that winners are picked in a verifiably random way. On top of that, PoolTogether is completely open-source, allowing anybody to audit the code alongside the regular professional audits done by third-parties.
Is PoolTogether a scam?
No, PoolTogether is not a scam. Users keep control over their cryptocurrencies, and winners are selected through verifiably random methods. They’ve been operating since 2020.
What prize pools are there?
PoolTogether only offers prize pools for USDC, a dollar-backed stablecoin. Users can deposit their USDC tokens on one of multiple chains to join in the pool. However, every prize pool has a different way of distributing the prizes, as some offer many small prizes and others have a few big ones.
How to win in PoolTogether?
Ultimately it’s a lottery, but your chances of winning are based on the average deposited amount over the prize period. So, when you join early in the pool, you will have a bigger chance to win.
How are the odds of winning in PoolTogether?
Your odds depend on the amount of money you put into the pool, and how early you joined the pool. The earlier you are and the more you deposit, the bigger the chance you will win. However, your chances also depend on the amount of money deposited by other users. In the Account tab on PoolTogether you can see your current winning chances.
What’s the biggest win in PoolTogether?
According to the official documentation someone deposited $74 and won more than $40,000. In total the platform paid over $5 million in prize money over a 3 year period.
How long to claim your prizes?
Prizes won on PoolTogether need to be claimed within 60 days. If not, the money goes back into the prize pool.
How to join PoolTogether?
- Download a wallet, such as Metamask or Coinbase Wallet.
- Make sure you add the supported chains to Metamask (Ethereum, Polygon, Optimism, Avalanche)
- Acquire USDC on the chain of your choice.
- Keep in mind to have a bit of native tokens, in order to pay gas fees.
- Now go to PoolTogether and find the ‘Deposit’ tab
- Select how much you want to deposit and click ‘Deposit to win’
- Approve the tokens for usage in your wallet
- And then approve the transaction to deposit your tokens
- With your deposits in the pool, you automatically join the lottery
- Do not forget to claim your rewards within 60 days!
