Let’s face it, saving is DIFFICULT! Very difficult! In fact, I would not be surprised if the majority of us in crypto tend to not save at all (HODLing does NOT count). But imagine if you could save money whilst at the same time taking part in a lottery that will allow you to win a prize with a guarantee that you would not lose your money - sound too good to be true? 

Well, it is not too good to be true as the first ‘no-loss lottery’ has been created by PoolTogether on the Ethereum network thus creating a healthy alternative to traditional lotteries. The entire premise is based on a concept of ‘Prize-Linked Savings Accounts’ where users can lock up a number of funds to take part in a lottery which in turn causes the user to inadvertently ‘save’ the money they have deposited into the Prize-Linked Savings Account.

How Can A Lottery Work With Nobody Losing Money?

To take part in the no-loss lottery, users will have to join a ‘pool’ on PoolTogether to get a chance to take part in the lottery. The funds a locked up for a certain period of time and the prize is funded by the interest accumulated from the money contributed to the pool.

In the case of PoolTogether, users are able to enter the pool by depositing Dai during the ‘open period’. Once the open period has ended, all of the Dai are locked up and are lent out to compound.finance to earn interest. At the end of the 15 day period, every user will get to withdraw their original Dai deposited into the pool. However, there will be one lucky user that will also win the prize of all of the interest accumulated during the 15 day period.

Currently, the second pool lottery is running with the funds already locked up. The prize for the current pool lottery is presently sitting at around 179.50 Dai. 

10% of the interest accumulated is also sent to PoolTogether for maintenance and development purposes.