It seems that one lucky crypto user was able to turn $73 into $43,760 by playing the lottery on the Ethereum-powered PoolTogether ($POOL) platform.
PoolTogether is “an open source and decentralized protocol for no-loss prize games.” This protocol is “controlled by POOL token holders.” The protocol “automatically distributes the POOL token to anyone who deposits into the protocol.”
Here is an introduction from the PoolTogether team:
“PoolTogether is a protocol for no-loss prize games on Ethereum. Modeled on the well established concept of ‘no loss lotteries‘ and ‘prize savings accounts‘ the protocol offers a chance to win prizes in exchange for depositing funds. Even if you don’t win, you keep all your deposited funds. Prizes are made up of the interest that accrues on all users deposits…“
“When you join a prize pool, your money is deposited into a yield source. The yield source generates the return that makes up the prizes. Currently, the protocol supports two different yield sources, Compound.Finance and yEarn Vaults...”
“Once you have entered into the pool you will continue to be eligible for future prizes. You do not need to take any further action. You will be eligible until you withdraw the money you deposited…“
“You do not need to claim your winnings. If you win, your winnings will automatically be converted to tickets which will increase your chances of winning again!…”
“Your odds of winning depend on how much money is in the pool. For example, if 1,000 Dai is in the pool and you deposit 1 Dai you will get 1 ticket. Your chance of winning would be 1 in 1,000.“
According to Leighton Cusack, a co-founder of PoolTogether, on 14 March 2020, someone deposited $73, and on 9 April 2021, they won $43,760.
392 days ago someone deposited $73 into PoolTogether. Yesterday they won $43,760 just by saving their money.
This is why @PoolTogether_ will be the on ramp for normal people into DeFi.
— Leighton Cusack (@lay2000lbs) April 10, 2021
The PoolTogether website points out that “using the protocol includes substantial risks of losing some or all of your funds,” with the main two risks being “protocol dependency risk” and “smart contract exploit risk”.
