Earn 50% Playing the Lottery by Defi Dad

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