No-Loss Lottery. It's a lottery where the money you put in, you get back, win or lose. And if you win, you win a prize on top of your funds. It's simple, it's cool, it's DeFi, and it's on the mobile Status App.
PoolTogether is a DeFi no-loss lottery on Ethereum. Buy 1 ticket for 1 DAI (equivalent to about $1.00), and you're entered into a lottery. After a week a drawing is held, and the winner receives the prize. At time of writing, prizes for DAI ticket winners are worth about $1,400.00.
The not-so secret sauce is that the money spent on tickets is pooled and lent out at the rates provided by DeFi lending platforms like Maker Oasis and Compound. With a large sum of money in the pot, the interest generated after a week can be quite substantial, enough to generate ~$1,400.00 per week (so far).
Sometimes investors don't want to hold a token that fluctuates in value like ETH or SNT. To get some financial safety from these fluctuations, but keep funds in crypto, people can swap ETH-based tokens for DAI, a cryptocurrency known as a stablecoin that keeps its value pegged to 1 DAI = ~$1.00.
DAI has a lot of interesting applications. Notably, lending pools where any DAI holder can lend DAI for a rate posted on Compound or Oasis and earn substantially more in interest than in most traditional bank accounts.
Savings rates around 8% are fantastic, but some people want a wider variety of options for holding their DAI. PoolTogether is a fun way to get the anticipation of potentially winning a large prize, while staying in a stable position with your crypto while you hold it.
Once you have DAI in your Status App wallet, it is incredibly simple to get a ticket. Go to the dapp explorer tab in the Status App, and search for PoolTogether. You'll be able to connect your wallet and buy 1 ticket per DAI.
If you're accustomed to lotteries where you lose your buy-in, it can be easy to forget that you still have tickets in the pool after the first, second, or however many drawings, so I sign up for the email updates to check in every week or two to see if I won.
PoolTogether is a fun, fantastic dapp to use on mobile. The user experience is intuitive and engaging, and participating with others in this prize pool has a special feeling to it. PoolTogether is an example of a dapp that takes a traditional idea and twists it just enough to make an incredibly engaging DeFi opportunity.
The best way to get started is to take a look at the pool and test your luck. Grab the Status App and join us in the dap.ps chat channel #dap-ps, and start chatting with other hopeful winners (aka us!).
*Disclaimer - This article was written for your entertainment, and the content is for informational purposes only. You should not construe any such information or other material as investment, financial, or other advice. Using decentralized financial tools does not come without risks and using Status is simply a portal to these tools - Status does not mitigate associated risks of said products.