Lotteries where you can't lose
Of course, I'm talking about no-loss lotteries, especially DeFi ones. They're not really “lotteries”, they're more like savings pools with prizes. The CeFi equivalent would be Premium Bonds, but those are boring. Either win big or win small.
No-loss lotteries work by depositing your assets into a lending platform or some other farm that generates interest. The no-loss lottery takes a fee on the interest that you receive, then gives the fee to one lucky winner!
For example, I put 1000$ in a no-loss lottery, and within a bit it generates 10$ of interest. The no-loss lottery takes a small bit of it, for example 5% (50 cents), then puts it into a pile. It does this for all of the people in the lottery, taking a cut and putting it into a pile.
Let's say the total pool is about 1 million $, so the pile is 50,000$. This 50 thousand is given to a lucky winner! (the more assets you deposit, the higher chance of winning)
Now, that's great, but it's only theory. Let's get into the no-loss lotteries that you can actually deposit your money into!
PoolTogether
PoolTogether is the first and biggest (decentralized) no-loss lottery. Most other no-loss lotteries are forks of PoolTogether, which really shows its success. It's been audited by CodeArena, OpenZeppelin, CodeArena again and CodeArena yet again.
They also have a bug bounty program that pays out up to 50 thousand dollars for big vulnerabilities in their code, and insurance coverage from Nexus Mutual, for those who are even more cautious. It's permissionless too, meaning anyone can create their own custom prize pools at any time.
Overall, PoolTogether is the OG no-loss lottery, but I personally haven't used it before. It's on 3 blockchains (Ethereum, Polygon, and Avalanche).
Moonpot
Moonpot is a fork of PoolTogether on the Binance Smart Chain, powered by Beefy Finance, a yield aggregator (we'll talk about these later).
It was created by some Beefy developers and, according to them, has the same standard of safety that Beefy has. It's also been audited by CertiK.
Moonpot is sadly only on the Binance Smart Chain, I've used it before when I did yield farming on BSC, but it's pretty secure and is a “sister project” to Beefy.
And that's all...
Well, there are probably more no-loss lotteries out there, and when I find more, I might update this article.
Tags here so they don't bother anyone #moonpot #pooltogether #defi #lottery #nolosslottery #beefy