Bitcoin : PoolTogether, the lottery you never lose

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Home Economy Bitcoin : PoolTogether, the lottery you never lose Bitcoin : PoolTogether, the lottery you never lose August 13, 2020 With the rise of decentralized finance, new applications are constantly being invented.Today we are going to take a look at PoolTogether, a lottery you can’t lose .No matter how much you play, it will…

Home Economy Bitcoin : PoolTogether, the lottery you never lose Bitcoin : PoolTogether, the lottery you never lose August 13, 2020
With the rise of decentralized finance, new applications are constantly being invented.Today we are going to take a look at PoolTogether, a lottery you can’t lose .No matter how much you play, it will be refunded to you at the end of the draw.What is PoolTogether and how does it work?
It is a lottery in which no one is harmed.You are going to deposit DAI in a pool, we can compare it to a pool in which everyone deposits their crypto-currencies.When you deposit a DAI, you get a ticket, and therefore a chance to win.The more DAI you deposit, the more tickets you have and therefore the chances of winning the lottery .

But even if you lose you get back the crypto-currencies you deposited, and that’s what is revolutionary!
But where does the money come from if everyone gets their stake? Well you will deposit your DAI for a week in the pool, during this week your DAI will work and generate interest .

In fact, the stored DAIs are loaned to actors in need of liquidity and the interest generated is used to inflate the pot.It is through the use of a smart contract that it is possible to reimburse all participants and to choose at random a winner who recovers the interest.

PoolTogether does not take any fees on the amounts won!
So, as of August 10, 2020, 927,967.80 DAI are deposited into the pool (which equals $ 927,967.80, because 1DAI = $ 1), the interest generated is $ 534 and will be sent to a winner.The draw is made every Friday and you must have deposited your DAI at least for a week .Indeed, otherwise it would be too easy to deposit a huge amount of DAI on Thursday night and earn the interest generated from others.
There is also another USDC pool this time around.Every day, $ 10 (10 USDC) is up for grabs.How much can I earn?
It all depends on the number of participants, at the time of writing the article the potential winnings are $ 534 in the DAI pool.

Still in this pool, 10,286 players have filed for $ 927,968 .As a reminder, the more DAI you deposit, the higher your chances are, because 1 DAI deposited = 1 ticket.So, in our example if you deposit $ 10,000 you have a 1.078% chance of earning the interest generated.

How can I play PoolTogether?
We are going to present two ways to participate, but there are many more, presented on their site.The first way is to go directly to the site of PoolTogether , the second via the app Money .

Directly on PoolTogether
Go to https://www.pooltogether.com/ Click on “Join the Pool” Click on Connect Wallet We suggest you use MetaMask to choose the amount you wish to deposit
Be careful, the transaction fees on Ethereum are very high, we advise you to use the second means.Via the Silver app
Indeed, while via the PoolTogether site you will pay transaction fees which are called gas or gas, Argent offers you these fees.So, if you use the Money application to deposit your DAI in the Pool, you do it for free!
Download the Argent application on iOS or Android If you are looking for a tutorial to understand everything about Argent it is here Once you are in the application, go to “Invest” and select PoolTogether Choose the pool that interests you (DAI or USDC) Click Buy / Sell to indicate how many DAIs you want to send
When you want to withdraw your DAI from the lottery, you will sell for pIDAI.Indeed, after having sent your DAI in the pool you are credited with the same number of pIDAI as proof of investment.

Are there any risks all the same?
Yes of course, DeFi is still a very young field and in IT nothing is invulnerable .Here are some examples where you could lose all or part of your bet:
The smart contracts through which your funds pass can be corrupted and a hacker steals your funds.Indeed, when you use PoolTogether you interact with several smart contracts: PoolTogether, but also Coumpound (which allows to generate interest) and Maker (which produces DAI).These contracts are still audited to verify that they do not contain any flaws, but that does not immunize them.The price of DAI collapses and is no longer equivalent to $ 1 (this can happen at certain times when, for example, Ether is subject to very strong variations like in March)
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About the Author : Robin Berné Co-founder of Cryptoast, I have been writing articles regularly on the site since 2017.I am passionate about cryptocurrencies and I can spend several hours a day reading and analyzing documents to find the nuggets of tomorrow.

I also like to dig deeper into my research on the changes that cryptos and blockchain technologies can bring to our lives and societies, from a social and economic perspective.All articles by Robin Berné.Related Posts.

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