Hey friends 👋
I've been a big fan of PoolTogether since I first discovered it. In case you missed it, PoolTogether is a crypto-native prize-linked savings protocol.
How it works is quite simple. Users deposit funds into the protocol, which in turn deposits them into a yield source like Aave. The yield generated is all pooled together (hence the name). Instead of doling it back out to those users individually (if you want that, you can just use Aave after all), the total yield is divided into a number of larger prizes that are awarded daily to random depositors. On top of that, there is now a large monthly prize alongside the smaller daily prizes—you can learn more about that here.
In this way, it's a lot like a lottery. Only you never lose the money you put in. That's why many affectionately refer to PoolTogether as a no-loss lottery. Whether you're using it to replace your lottery ticket vice or as a savings account with an asymmetric ROI, you're not alone. PoolTogether is among the most popular DeFi protocols by daily active users.
Recently, though, we got a sneak peek at a game-changing collaboration between Juno Finance and PoolTogether that opens up a whole new world of possibilities. I’ll explain exactly what I mean by that below. But first…
If you’re unfamiliar with Juno, they bill themselves as a complete bank replacement. It’s a bold statement, especially given that they are technically a (neo)bank. But it speaks to their disruptive nature. Juno is doing things other banks aren’t.
Fiat to crypto onramps, industry leading interest rates on fiat deposits, cashback returns on spending and a host of other features.
But you are probably thinking “what does this have to do with PoolTogether?” Well my friend, allow me to introduce you to the new PoolTogether Debit Card powered by Juno.
The PoolTogether Debit Card offers users the ability to spend their PoolTogether deposit directly from their wallet, eliminating the need to withdraw and transfer funds to a traditional bank account. Users can keep their chances to win right up until the moment they spend, making everyday purchases at over 40 million merchants worldwide, at any location that accepts Mastercard.
This means you could treat your PoolTogether deposit like a de facto bank account. And with Juno's direct deposit, FDIC-insured fiat accounts, and crypto on-ramps, it can easily meet all your daily needs while allowing you to tailor your experience to your preferred level of self-custody.
The PoolTogether Debit card is coming soon to users in the United States. However, this is expected to expand alongside Juno's other services to more countries soon.
How is This Even Possible?
Juno's debit card offers users two methods for crypto-to-fiat transactions: push or pull.
The push method simply cashes out crypto to fiat via Juno's off-ramp services. This could be ideal for certain cryptocurrencies, especially during times of volatility or when a user wants to take profits. However, it doesn't make much sense for PoolTogether deposits, which should ideally be left in the protocol until they are absolutely needed to improve the odds of winning.
For that, we have the Pull Method, aka direct spending, and this is where things get interesting!
With direct spending, PTaUSDC is withdrawn (pulled) from the Web3 wallet directly at the point of sale. Here's a technical explanation of what's happening on the back end (adapted from this post):
- The user approves their PTaUSDC to be spent by the contract.
- The withdrawFromPool() function is called, and it withdraws from the pool.
- The function burns PTaUSDC and withdraws USDC to the user's wallet.
- The user approves their USDC to be spent by the contract.
- The function performTradeForSpecificAmount() is called, which deposits the USDC into the contract.
- The USDC is auto-converted into fiat in the checking account and spent.
Spending works with deposits on Optimism, Polygon, and Ethereum. Users will receive rewards for spending with their PoolTogether card in addition to the rewards they receive for holding PTaUSDC.
The direct spending method is the realization of a dream of mine since your crypto remains crypto right up until the point it's spent. However, it's important to note that in order to use this method, users must undergo a KYC process with Juno. Given that this is a regulated financial institution and the card bears the Mastercard logo, I think this is to be expected personally.
Oh, I almost forgot to mention, your card features a custom handle! Check mine out!
If you’re interested in the PoolTogether Debit Card powered by Juno, you can reserve your personal handle and save your spot on the waitlist by visiting this website.
Let me know what you think about this concept in the comments below. Have you tried PoolTogether? Have you tried Juno? I’d love to hear about your experience.
Until next time 👋