Previously, we’ve covered Ethereum’s signature no-loss lottery called PoolTogether, back in October 2020. PoolTogether launched in 2019 as a no-loss savings game, which was the first blockchain-automated weekly lottery drawing, where the pooled interest accrued by deposited DAI is awarded to a random winner ticket holder.
While PoolTogether has grown in many ways, now offering 4 pools for those depositing DAI, USDC, UNI, or COMP as well as creating community prize pools where anyone can deploy a no-loss lottery, the biggest developments recently is that PoolTogether launched a governance token called POOL and weekly prizes have grown from just $1000/week to over $100,000/week!
As with any new governance token, there was a retroactive distribution of 14% of total POOL to all POOL 17,072 wallets who were depositors across the V1, V2, and V3 protocol up until January 14th 2021. What I want to focus on today is what we commonly call a liquidity mining or yield farming program. In the case of POOL, 5% of total POOL supply will be distributed to all prize pool depositors over the next 14 weeks, ending on May 26th, 2021.
Since POOL is trading on Ethereum DEXs at about $18, this means the estimated APY for those playing the 4 prize pools can almost be viewed like high interest incentivizing one to play the no-loss lottery. Remember, when you play PoolTogether, your deposited assets are 100% refundable. It is the interest earned with your deposited tokens in Compound that “pools together” for the collective weekly prize that one lucky random winner gets to take home.
How Earn Up to 50% APY Playing the No-Loss Lottery
Before we get started, please be aware of a few major risks.
- Smart contract risk is always my top concern, but one can buy smart contract cover to protect against bugs in PoolTogether by going to Armor.fi (underwritten by Nexus Mutual) or Nexus Mutual.
- Reminder that there is a risk of the DAI peg failing or if DAI trades at a premium, the deposited DAI in Compound could become locked due to 100% utilization, meaning one has to wait to withdraw their assets from PoolTogether.
- Be aware the APYs I quote will likely change whenever you read this. The APY is very dependent on the price of POOL, which could go up or down.
- This is not investment advice. I am not a financial advisor. Do your own research.
Here’s how one can deposit and earn with DAI, USDC, UNI, and COMP on PoolTogether!
The following instructions will walk you through PoolTogether’s website because the APYs are conveniently located on it but one could skip all of this by just Zapping into any of the 4 prize pools at zapper.fi/invest, search PoolTogether, and add liquidity with any token you like and Zapper will auto-swap those to the appropriate pool tokens to play in PoolTogether!
1 – Go to the PoolTogether app
2 – Connect your Ethereum wallet
3 – Choose a pool based on your assets and click Deposit (ie Deposit DAI)
4 – Specify how much to deposit, given 1 token = 1 ticket, so 1 DAI = 1 ticket or in another pool 1 UNI = 1 ticket.
5 – Click Allow DAI (giving approval to let PoolTogether spend your tokens) and then click DEPOSIT a second time to actually deposit. I always wait until the first transaction confirms using recommended gas prices from gasnow.org.
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
