The PoolTogether platform and its “no-loss lottery” concept have thus far gained an impressive amount of traction throughout the recent months. Recently, PoolToether has enjoyed an equity injection of $1 million, as well as a USDC pool being added to its protocol. PoolTogether is striving to be the best possible lottery it could be for the modern DeFi age and seems to be doing an admirable job of it.
Mainstream Lottery Platform In Crypto
As the crypto industry becomes more and more accepted by all types of people, it’s just a matter of time before something like PoolTogether can exist within its own particular niche. Many people find the possible thrill of gaining a massive win for a little deposit too enticing to think about the odds so that they will invest their hard-earned DAI tokens into things like this lottery. Instead of a money market like Compound.
The world is a democracy, and the possible gains you can get from PoolTogether is no laughing matter. Even a small deposit holds the off chance that you can earn over $1 000 that week, with the pool estimates of the platform standing at $1530 for this week’s payout.
Clever Marketing Tactics
A vital feature of this platform, one that adds to its immense attraction, is the original deposits are given back. This creates an illusion that the participant has lost no money, thus making the lottery idea seem more attractive.
As it stands now, though, the current pool has about a million USD worth of DAI locked into it. A good chunk of this comes from sponsored funds, only providing extra liquidity to the platform while abstaining from the lottery itself. With this in mind, the advantage comes very much for small-scale token holders taking part in this event. While still less likely to win than holders with a higher stake in it, the small-scale holder has far less of a disadvantage as they would have had to begin with.
Seeing Profits Where Profits Are Made
Even companies are getting into this, with IDEO Lab Ventures leading an investment round for PoolTogether that totaled into a million USD. The investment itself isn’t directly put within the protocol but instead serves to provide investors with future equity stakes.
PoolTogether, as a platform, has frequently been criticized for an array of reasons, as is the norm for gambling and lottery programs. The criticisms revolve mostly around the fact that it wastes productive capital, while others shun its closed codebase.