Cryptocurrency “no-loss” lottery gaining in popularity
By Bob Garcia
PoolTogether is now worth over $500 million due to its different cryptocurrency-based pools
It looks like the no-loss lottery has now found a perfect product-market fit. It’s been just a couple of days since PoolTogether launched its cryptocurrency governance token, POOL, which was airdropped and the platform has managed to crack $500 million in total value. That currently goes above $51 million spread between UNI, USDC, DAY, and COMP lottery pools.
The function of PoolTogether is to “pool” all the user funds to later deposit them into decentralized finance saving protocols. The interests are then used as prizes for random winners and the initial funds are returned to buyers; therefore, a “no-loss” lottery is created. The project has had a total value locked for months of around $10 million, but it wasn’t until February 17, when the POOL governance token was airdropped, that the growth really exploded.
Leighton Cusack, PoolTogether’s founder, points to the distribution model for POOL as a partial explainer for the protocol’s growth. In an interview with Cointelegraph, he said, “As part of the initial decentralization, 5% of total POOL supply (500,000 tokens) were allocated to be distributed automatically to all no loss prize pool depositors over the next 14 weeks.”
Another different reason for the growth is completely organic; however, it’s clear to say that the more deposits, the more appealing in the prize pool. Cusack added, “The prizes are MUCH larger than they have ever been. Right now, the protocol is on track to aw1ard over $60,000 in prizes in the next 7 days. So, the higher prizes [are] attracting more people to deposit.”