What is PoolTogether?
PoolTogether is a no-loss lottery which provides you with a chance to earn a prize every week.
The idea is quite simple: users pool their DAI (a decentralized stablecoin) by purchasing tickets. This DAI accumulates interest through Compound, a DeFi lending protocol. The interest is then won by a ticket holder, picked at random, each week.
As the prize pot is made up of the interest generated, the amount of DAI you deposited does not change - and you can take it out of the pool whenever you want (hence, no-loss).
Why does it matter?
PoolTogether gives you a chance to win a prize and in doing so incentivises savings in an original way. It also highlights the interesting new models emerging in crypto.
How can I use PoolTogether with Argent?
- Open Argent
- Tap Invest
- Tap PoolTogether
- Tap on the pool you are interested in (DAI/USDC)
- You will be redirected to the menu where you can follow on-screen instructions to Buy or Sell your PoolTogether investment.
How does it work?
It’s a little more complex behind-the-scenes, but users wishing to join the pool simply need to deposit some DAI.
All the DAI in the pool accrues interest, and at the end of each week one lucky person is randomly selected to receive the winnings.
This is all done by smart contracts, so anyone can verify it's fair by checking the code, and you can withdraw your DAI at any time.
What's more, over $330,000 in sponsorship has been added to the pool from individuals and crypto companies that want to help grow the ecosystem.
This Sponsorship amount is ineligible to win, but still contributes interest to the prize pot - meaning more potential earnings every week!
How can I get some DAI?
Getting DAI is easy through the Argent Wallet. If you would like to learn how to buy using fiat currency (such as USD, GBP, EURO etc), please visit here.
Alternatively, you can exchange tokens in-app through our partner exchange.
Where can I go to learn more?
How does PoolTogether make money?
At the moment PoolTogether does not make money. However they do plan to in the future by taking a small percentage of the winnings from each pool.
Find out more at https://www.pooltogether.com/faq
A summary from PoolTogether on the risks of using the service is available here.
PoolTogether have taken a number of steps to mitigate such risks, including independent smart contract audits by OpenZeppelin & Quantstamp. There is also a bug bounty program in place to identify potential exploits and weaknesses.
Argent users supply assets to PoolTogether at their own risk. Pooltogether advises that "as with all early-stage products there are risks associated with using PoolTogether and users assume the full responsibility for these risks."
You can also review PoolTogether's full terms of service here.
Find out more about DeFi risks here.