No-loss crypto lotteries are one of the most underrated income sources in the crypto industry. Imagine that your savings account gradually earns you interest, and you also have chance to sometimes hit a big win. This is essentially a no-loss crypto lottery.

PoolTogether

The first no-loss crypto lottery protocol was PoolTogether. This decentralized protocol now has more than 10 pools. Launched in 2019 on Ethereum, PoolTogether has pools on other blockchain networks, such as Polygon and Avalanche.

As of this writing, the protocol has $41 million worth of cryptoassets locked in its different pools. Currently there’s more than $82,000 in weekly prized across all pools. You may ask how the protocol affords to pay the prize. When a lottery participant deposits money to the pool, the amount automatically is sent to other DeFi protocols to generate interest. The advantages of the Aave protocol are that 1) it is highly liquid and 2) overcollateralized. Overcollaterization, the requirement that the borrower should deposit the collateral higher in value than the amount they’re borrowing, minimizes the default risk.

Let’s say you decide to deposit some money in one of the PoolTogether pools. The first question you may ask is “Is the protocol fair?”. The answer to the question is yes since the protocol uses Chainlink VRF (Verifiably Random Function). Chainlink VRF is a verifiable random number generator created by Chainlink, the most widely used decentralized blockchain oracle network.

Moonpot

Another popular no-loss crypto lottery is Moonpot launched on BNB Chain in July 2021. As its Docs explains, Moonpot is a win-win prize game that rewards everyone who takes part. The moment you stake crypto (e.g. CAKE) into one of the pots, you start to earn interest on your deposit. Your deposit grows, and since each pot gives out prizes (daily, weekly or bi-weekly draws) you may sometimes win big. This is what is meant under no-loss or win-win lottery.

And by the way, you don’t need to buy a lottery ticket. As in PoolTogether your deposit is your entry ticket. To play on Moonpot, go to play.moonpot.com, connect your wallet, choose which blockchain you want (at the moment the protocol supports BNB Chain and Fantom), and select a savings pot. The pots I myself have deposited are CAKE Pot, Ziggy’s Pot and Tomb-FTM LP Pot.