On the PoolTogether platform, you can bet with DAI or USDC.
If you don’t win the round, your initial investment is returned.
Every game of gambling involves taking risks, as it generally starts with an initial investment that can be returned or lost. But what happens if we take the risks out of the equation and add a platform that runs on the Ethereum network? We’re getting PoolTogether, a new mechanism for placing collective bets.
PoolTogether is defined as “no loss lottery”, where you can win dai (DAI) or USD Coin (USDC) without the risk of losing your investment. You can manage cryptocurrencies directly from your Ethereum wallets such as MetaMask, Trust Wallet and Coinbase Wallet among others.
How PoolTogether works
To place a bet on PoolTogether ticket must be purchased, either from DAI or USDC, anchored cryptocurrencies or stablecoins running on the Ethereum blockchain. Each ticket costs one dollar, and we can buy as many as we want. The more cards we have, the more likely we are to win.
Tickets are accumulated in a weekly fund which is received by Friday, although the winner is not chosen until Friday of the following week. That is, if we buy on Monday, we will have to wait until Friday of the following week to find out who won.
Suppose there are 1000 tickets in total in the pot and we own 500. We have a 500/1000 chance of winning (50%). Of course, the selection process is completely random, which means that a person who bought only 1 ticket can be a winner.
Where does the profit come from if nobody loses?
In game theory There is what is known as a zero-sum game., according to which the gains of one group of players correspond to the losses of others. By adding up the profits minus the total losses, the result is 0. This is the modality used in most bets, but the opposite happens in PoolTogether.
The platform works together with the complex lending platform. There They place funds in loans, generate interest and then withdraw.
In this way, every pot accumulated in a betting round in PoolTogether is loaned to Compound. As the circle closes, the funds have generated interest. At the end of the draw, each player gets their investment back and the winner gets the interest generated by the total funds in the pot.
What risks do I take when betting and what do I need to participate?
There is basically no risk. Regardless of the size of your order, the entire order will be refunded. Only if you win, you will get the extra amount.
The main requirement for participation will be that you have a wallet that allows you to interact with the Ethereum network. In our case we use MetaMask. You must also have resources in DAI and USDC.
Failing that, we can participate with ETH, because through Uniswap (decentralized exchange platform) ETH can be exchanged for DAI or USDC without leaving PoolTogether. It is important to note that DAI and USDC draws are grouped into separate groups.
To get started, the first thing we will do is go to the official PoolTogether portal.
Now you will have to click on the “JOIN THE POOL” option.
You can configure the language of the platform in the language menu at the bottom.
Within PoolTogether, the first step is to link your wallet. To do this, we will select the “connect wallet” option to make a choice. In our case, the MetaMask extension of the browser from which we continue to connect will open.
At this moment, we already have a connected wallet, as we can see in the upper right corner where part of the public address used in MetaMask is shown.
On the screen we will also see the approximate amount of the prize, which is the interest that could be accumulated in the Compound and that will be awarded to the winner of the draw. At the bottom we will see a type of thermometer that shows the size of the pot, and below it how much time we have to enter the next draw.
Join the giveaway
To join the draw, we need to purchase tickets, with DAI or USDC, worth $1 each. To continue, we will have to click on the “join pool” option.
In this case, we see that the purchase ticket box is automatically filled depending on the available balance in our wallet.
default, Depending on the situation, we will enter the draw in DAI. However, if we want to enter the USDC pool, we will need to go to the “ACCOUNT” option to enter the corresponding draw. The steps to follow are exactly the same.
Now, if you need to exchange ETH for DAI or USDC, PoolTogether gives you the option to use Uniswap. In order to buy the tickets we want, we will have to select the option «Do you need DAI? Exchange ETH DAI.
The process to follow is quite simple. The first thing is to enter the exchange amount and the second field will be filled automatically.
Then we will click on “Exchange” and the MetaMask window will open to confirm the transaction. We’re waiting for confirmation and that’s it. Now, with our account balance, we can return to the “Pool” menu.
The first thing will be choosing the number of tickets to buy.
At the bottom, depending on the number of selected tickets, we will see the probability of winning depending on the number of purchased tickets. The larger the quantity, the the higher the probability of winning the final prize.
Likewise, at the bottom we will see from which date the draw we enter will become valid. As already explained, Drawings are held every Friday with the accumulated jackpot from the previous week. If we enter on Thursday, the draw will take place on Friday of the following week.
Finally, with the selected amount, we press “Buy tickets” and a window will open in MetaMask from which we will have to enable DAI to work with PoolTogether.
When DAI is enabled, we can buy tickets. So we click on “Buy tickets” again, confirm the operation with MetaMask and that’s it.
In the upper right corner we will see the number of cards we have for the next round. We can buy multiple tickets by following the same steps.
From the “Account” menu, we can see the draws we are currently in.
Here we are allowed to manage the total balance managed within PoolTogether (total tickets, total balance of purchased tickets, total profit). Likewise, we will have information about the draws in which we participate, in addition to those that are available and in which we have not yet purchased any tickets.
Final draw and withdrawal of funds
When the round ends, a winner will be chosen. This giftas explained on the platform, It appears randomly, but is done centrally directly by PoolTogether.
Once a winner is selected, the funds are transferred directly to their wallet, although they are automatically converted into tickets for the next round. so, If we want to withdraw the earned funds, we will have to withdraw them manually.
Likewise, in the event of a loss, the investment made is automatically converted into tickets that can be used in the next draw.
Any ticket you have purchased can be withdrawn and the total amount will be refunded, either in DAI or USDC, as long as the draw is not in progress. It must also be taken into account that withdrawals cannot be made in parts.
To withdraw, we must go to the “Account” menu and select the set we entered.
Here we click on pull.
In this field we will have to indicate the reason for withdrawal and then press “Yes, withdraw”. With this we need to confirm the transaction from the wallet. We are waiting for network confirmation and the funds will be withdrawn successfully.
There is a growing market participating in decentralized finance (DeFi), the system that PoolTogether interacts with, and which is increasingly attracting more and more people, both experts and the curious.
PoolTogether is definitely made for everyone. Based on the premise of “Lottery without losing”, it allows you to play without losing.
however, It is also important to take into account the commissions that are paid every time tickets are purchased. Although it is possible that the purchase will only be made once, as each time the draw ends, whether we win or not, we are automatically entered into the next week’s draw, until we decide to withdraw funds.
PoolTogether is not only a new way of gambling, but also eliminates the risk of losing your invested funds. Something that for some might be an invitation to bet with higher amounts.