NO CRYPTO EXPERIENCE REQUIRED. There is a growing market participating in Decentralized Finance (DeFi), a system with which PoolTogether interacts and that increasingly attracts more people, both specialists and curious.
PoolTogether is not only a new way to bet, it also eliminates the risk of losing the funds bet. Something that, for some, could be an invitation to bet with higher amounts.
PoolTogether is definitely made for everyone. Based on the premise of being a "lossless lottery", it allows you to play without ever losing.
On the PoolTogether platform you can bet with DAI or USDC. If you don't win in a round, you get your initial investment back.
However, it is important to take into account the commissions paid each time tickets are purchased. Although it is possible that the purchase is only made once, since every time a draw ends, whether we win or not, we automatically enter the draw for the following week, until we decide to withdraw the funds.
PoolTogether is defined as a "lossless lottery", where you can win dai (DAI) or USD Coin (USDC) without the risk of losing your investment. You can manage cryptocurrencies directly from your Ethereum wallets such as MetaMask, Trust Wallet, and Coinbase Wallet, among others.
How PoolTogether works
To enter a bet in PoolTogether you must buy a ticket, either with DAI or USDC, anchored cryptocurrencies or stablecoins that run on the Ethereum blockchain. Each ticket has the cost of a dollar, and we can buy the amount we want. The more tickets we have, the more likely we are to win.
Tickets are accumulated in a weekly prize pool that is received until Friday, although it is not until Friday of the next week when the winner is chosen. That is, if we buy on a Monday, we will have to wait until Friday of the following week to know who won.
Let's suppose that inside the pot there are a total of 1000 tickets, and we own 500. We have a 500/1000 chance of winning (50%). Of course, the selection process is completely random, making a person who bought only 1 ticket be a winner.
Where do the profits come from if no one loses?
In game theory there is what is known as a zero-sum game, whereby the gains of one group of players correspond to the losses of others. Adding the winnings minus the total losses the result is 0. This is the modality used in most bets, but in PoolTogether the opposite occurs.
The platform works in conjunction with the Compound loan platform. There the funds are placed in loans, they generate interest and then they are drawn.
This way, every pot that accumulates in a betting round in PoolTogether is loaned out to Compound. As the round closed, the funds had earned interest. At the end of the draw, each player recovers her investment and the winner earns the interest generated by the total funds in the pot.
What risks do I run when betting and what do I need to participate?
Basically there is no risk. Whatever the size of your order, the entire order will be returned. Only in case of winning, you will receive an extra amount.
The main requirement to participate will be to have a portfolio that allows you to interact with the Ethereum network. In our case we use MetaMask. You must also have resources in DAI and USDC.
Failing that, we can participate with ETH, since through Uniswap (decentralized exchange platform) you can change ETH to DAI or USDC without leaving PoolTogether. It is important to note that the DAI and USDC draws cluster in separate wells.
Their smart contracts have been reviewed by Quantstamp and OpenZeppelin. They have observed that there was a certain risk due to the centralization of power in the Pool administrators, but they considered it low since users can control their funds at any time.
PoolTogether's goal is to move to a completely decentralized governance model in the future.
OpenZeppelin Pods Audit
OpenZeppelin PoolTogether audit
What are the risks?
They have worked hard to ensure the safety of PoolTogether. Your code has been independently audited by OpenZeppelin and Quantstamp. They also have a bug bounty program. You can view their audits and read more about their bug bounty program here. However, as with all early stage products, there are risks associated with using PoolTogether and users assume full responsibility for these risks. You should not deposit money that you are not comfortable losing. You can review our terms of service here. You can also check the details
about the different types of risks involved in using PoolTogether here.
How do I know if I won?
If you joined a Pool, you can verify if you won by looking at your "account" page after a prize for which you are eligible has been awarded. They also send email notifications when a Pool ends
How does PoolTogether make money?
PoolTogether does not make money. PoolTogether is backed by some of the world's leading venture capital firms, allowing them to focus on creating a great product.
1.Join the Pool
Deposit Dai into the pool to get tickets. Each ticket is a chance to win weekly prizes! For every 1 Dai you deposit you get 1 ticket.
2.Interest builds
All the Dai in the pool earns interest. The prizes are funded solely by the interest earned.
3.Prizes awarded
At the end of the week one lucky person wins all of the interest that accrues!
4.Never lose!
Whether you win or not you get all of your money back! You can withdraw your savings and winnings at any time.
Now you will need to click on the option "JOIN THE POOL" (join the pool).
You can configure the language of the platform in the language menu that you will find at the bottom.
Within PoolTogether, the first step is to connect the portfolio. To do this, we will select the option "connect wallet" to make the choice.
On screen we will also see the approximate amount of the prize, which is the interest that could be accumulated in Compound and that will be given to the winner of the draw. At the bottom we will see a kind of thermometer that indicates the size of the well and below the amount of time we have to enter the next draw.
To join the raffle we must buy tickets, with DAI or USDC, for a value of USD 1 each. To continue we will need to click on the option "join the pool".
In this case we see that the box of tickets to buy is automatically filled in depending on the balance available in our portfolio.
By default, depending on the balance, we will enter the draw in DAI. However, if we want to enter the USDC pool, we will need to go to the "ACCOUNT" option to enter the corresponding draw. The steps to follow are exactly the same.
The first thing will be to select the number of tickets to buy.
At the bottom, depending on the number of tickets selected, we will see the probability of winning depending on the number of tickets purchased. The greater the quantity, the greater the probability of winning the final prize.
Similarly, at the bottom we will see from what date the draw in which we are entering will be effective. As already explained, the draws are made every Friday with the accumulated well of the previous week. If we enter on a Thursday, the draw will take place on Friday of next week.
To finish, with the amount selected, press «Buy Tickets» and a window will open in Coinbase Wallet from which we will have to enable DAI to work with PoolTogether.
With DAI enabled, we can buy the tickets. So we press "Buy Tickets" again, we confirm the operation from Coinbase wallet and that's it.
In the upper right corner we will see the number of tickets we have for the next round. We can buy more tickets by following the same steps.
Manage tickets
From the "Account" menu, we can see the draws we are currently in.
Here, we are allowed to manage the balance sheet managed within PoolTogether (total tickets, total balance of purchased tickets, total profit). Likewise, we will have data about the raffles in which we participate, in addition to those that are available and in which we have not purchased any tickets yet.
Final draw and withdrawal of funds
Once the round is over, the winner will be chosen. This raffle, as explained on the platform, occurs randomly, but is carried out centrally directly by PoolTogether.
When a winner is chosen, the funds are transferred directly to their wallet, although they are automatically converted into tickets for the next round. So if we want to withdraw the funds won, we will need to withdraw them manually.
Likewise, in case of losers, the investment made is automatically converted to tickets that can be used in the next draw.
Each ticket you have purchased can be withdrawn and its total amount will be refunded, either in DAI or USDC, as long as the draw is not in progress. It must also be considered that withdrawals cannot be made in parts.
To withdraw we must go to the "Account" menu and select the well in which we have entered.
Here we click on withdraw.
In this box we will need to indicate the reason for the withdrawal and then press "Yes, withdraw". With this we must confirm a transaction from the portfolio. We await confirmation from the network, and funds will have been successfully withdrawn.
thanks for reading have a great day 🤗
