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What is PoolTogether and how to use it

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DappRadar

A blockchain lottery funded by % interest

PoolTogether is one of the most interesting blockchain products, both in terms of its features and particularly its underlying psychology. Best described as a mash-up between personal decentralized finance (DeFi) and a group lottery. PoolTogether works by accumulating the interest from all its ticket holders and regularly – daily or weekly – rewarding it to one ticket holder. 

In this way, it attempts to balance the thrill of potential – if unlikely – wins. With the more general warm feeling that your presence – however small – is making someone else happy. 

The main prize pool is based around the DAI stablecoin, which is worth $1. 

Each entry ticket requires you to stake one DAI token. Hence each ticket in the pool generates a small amount of interest from the DAI staked. This is all combined together, and the total is awarded to one ticket on a weekly basis. Hence the term PoolTogether. You can sell your tickets and reclaim the DAI you deposited immediately and at any time.

While having your money in PoolTogether, you will accumulate POOL. This is a newly launched governance token. The longer you stake, the more POOL you’ll earn. 

Now you have a better idea of what PoolTogether is and can offer you, let Jon Jordan take you through the dapp and see how it all works. 

You can check out how it all works at the PoolTogether website. All you need is some DAI (or USDC) and an Ethereum wallet such as Metamask

But, as ever, remember these are experimental products and you should never spend more tokens or value than you are prepared to lose.

How to join PoolTogether

  • Go to Pooltogether.com
  • Click the APP button on the top right
  • By pressing the DEPOSIT buttons, you can join the pool for DAI, USDC, UNI, or COMP
  • Users get tickets based on the number of tokens provided. 
  • Also, click ACCOUNT
  • Based on the tokens provided, users earn POOL. POOL is the governance token of PoolTogether. 

Ready to learn more? Check out our other education articles!

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