Earn 67% on Entropyfi by Defi Dad

Before we get started, DeFi Dad disclosed that his team 4RC did invest in the EntropyFi seed round. This is not a recommendation or endorsement to buy ERP, but it is intended to disclose any bias he might have in talking about this liquidity mining program.

One of the very first DeFi applications ever built on Ethereum was a prediction market called Augur. Since then, many innovations have been developed in DeFi, including a lossless primitive, popularized by the no-loss lottery game, PoolTogether. The concept behind lossless games in DeFi is that everyone can pool their money, play a game (ie a lottery or bet on an outcome) and the interest from the pooled money is awarded to the winner(s). In PoolTogether, it means anyone can deposit stablecoins, allow it to earn interest alongside other deposits and have a chance at being randomly awarded the prize money, like a lottery.

In this new lossless market prediction game launched by Entropyfi, they’ve removed the financial disincentive that penalizes users who make wrong predictions in a prediction market. You can bet on an outcome like “Will BTC be higher than $67k in 2 days?” and if you’re right, you win a portion of the accrued interest generated from all the players’ pooled deposits but if you lose, you only lose your generated interest, not your original stablecoin deposit.

With a better aligned financial incentive design, Entropyfi is expected to scale prediction markets to include