LeftOfCenter
At the beginning of this year, Lianwen once said that, unlike gambling in the general sense, PoolTogether participants will not incur a capital loss, and the lucky ones can enjoy the grand prize exclusively.
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Last Friday (October 23) PoolTogether V3 was officially launched. The new version adds multiple sources of income growth including liquidity mining, supports lottery-based rewards, supports multiple different types of assets, and generates income A series of functions such as source and prize pool strategy.
Of particular note is the new PoolTogether Build function , which is a developer tool that allows developers to customize any ERC-20 token prize pool and deploy their own prize pool strategy. It has only been online for 5 days, and we have already seen it. The various possibilities that this custom gameplay brings to the ecology, whether it is a mining project such as Pickle or a game project such as Axie Infinity, we have seen various long-tail prize pools spontaneously deploy on PoolTogether, and currently deploy tokens There are 38 types of prize pools, with a cumulative total of over USD 500,000.
In addition, PoolTogether also made an important decision that is to start from the V3 version, PoolTogether will fully transition to decentralized governance, namely the future of what the official prize pool, the progressive policies and other related entirely determined by the community will be released, which means that will be PoolTogether Issue governance tokens in the future .
Customized prize pool tool PoolTogether Build
Similar to a developer tool, PoolTogether Build allows users to create a bonus pool of any ERC-20 format token, and then deposit various assets in the bonus pool to various DeFi platforms to maximize revenue. In the V2 version before the upgrade, PoolTogether only supports the income strategy of investing Dai principal in the Compound protocol. The V3 version adds support for the Year.Finance income strategy , that is, it supports the investment of funds in the bonus pool into agreements such as Curve to earn CRV tokens.
This means that the upgraded PoolTogether will have more revenue sources and a more diverse bonus pool model. In fact, PoolTogether Build is the core content of this update. In fact, the new version has only been online for only two days, and we have already seen the various possibilities this custom gameplay brings to the ecology.
It is shown that there are currently 38 token bonus pools deployed through PoolTogether Build , with a cumulative total of over 500,000 U.S. dollars . In addition to the previously supported Compound Dai (cDAI) bonus pool, there are PickleToken (PICKLE), HEX (HEX), Curve( CRV), Synthetix (SNX), DefiPulse Index (DPI) and other long-tail bonus pools .
The reward strategy also supports custom settings. For example, you can set 10 winners for the prize pool instead of the only one. For example, you can allocate half of the prize pool to depositors and the other half to charities.
Progressive transition to fully decentralized governance
In addition to the new custom prize pool function, PoolTogether officially still retains the original Dai prize pool , which is temporarily maintained by the PoolTogether team and can be viewed on the PoolTogether website. Once the prize pool reaches USD 10,000 (estimated deposit is approximately USD 8 million) time), will vote to add additional prize pool by the community.
In fact, PoolTogether may gradually transition to fully decentralized governance by issuing coins in the future. In other words, community members can jointly participate in the creation, management and decision-making of the key functions of the core prize pool by managing a set of parameters of the PoolTogether protocol.
Before achieving fully decentralized governance, PoolTogether intends to adopt a progressive decentralized governance approach. To this end, the V3 version has introduced the following series of new functions: abolish the management key and contract upgrade function of the prize pool, use ChainLink verifiable random function service VRF to determine the winner of each lottery , increase the reliability of randomness, and improve the system Security reduces centralization risks and lays the foundation for complete decentralization.
In the V3 version, the prize pool will also adopt a decentralized method. Not only does it need to be created without permission, the prize pool strategy can be customized, but the prize pool is no longer controlled by the PoolTogether team, and the prize pool creator cannot control the deposits in the fund pool. Only the lottery bonus (ie interest) can be managed .
Essentially, the PoolTogether prize pool is divided into two layers of smart contracts, principal and bonus. Among them, the first smart contract holds the deposit principal. Once the prize pool is created, it cannot be changed. The only possible operation is for the depositor to withdraw funds. The main function of the second smart contract is to distribute the bonus after collecting the income. The contract can be changed by the creator. At this time, the contract is at risk of being occupied by the contract creator. In other words, the only risk in PoolTogether is the bonus controlled by the creator of the smart contract, and the principal is 100% safe.
What are the other features in this update?
Get the lottery instantly: Get the lottery immediately after depositing funds, without waiting for the next draw.
“Lottery-based” rewards : The new version of PoolTogether adopts a “lottery”-based reward model. If a prize pool participant successfully invites others to join the pool, they can get lottery rewards, which can increase the user’s probability of winning, and users can also extract the basis of lottery representatives assets. In addition, the longer the funds deposited in the prize pool, the more lottery awards can be obtained.
Integrate multiple income farming strategies : the new version of PoolTogether integrates liquidity mining strategy, that is, deposit funds in smart contracts, in addition to obtaining normal income, you can also get some new token income.
Problems and opportunities
Since its launch in 2019, PoolTogether has met market demand and has achieved organic growth. According to the data, the total payment of PoolTogether’s prize pool is nearly 30,000 U.S. dollars, with more than 12,000 players, and 25% of the network traffic comes from China.
Similar to most DeFi projects, PoolTogether also faces the risk of being controlled by a big whale, that is, by purchasing most of the lottery tickets in the prize pool, it has an absolute advantage in the chance of winning, which will squeeze the chance of winning for small participants and reduce participation to a certain extent. rate. To this end, PoolTogether’s new feature Pods allows multiple users to merge their own lottery tickets. As long as any one of the lottery tickets wins, the bonus will be proportionally distributed to all participating users in the “merged pool”.
Sponsor model
PoolTogether has a sponsor model that allows sponsors to invest funds into the prize pool, which can increase the number of prizes. Since the sponsor does not participate in the lottery, it will not dilute the probability of other participants. In fact, the funds invested by sponsors have always taken a large share of the entire prize pool, accounting for about 1/3 of the overall prize pool .
However, under the impact of the recent DeFi mining tide, not only the gas fee for participating in PoolTogether has increased, but also the Amber people with high risk appetites are of course inclined to choose which can bring huge liquidity mining income, resulting in a significant decline in PoolTogether’s data .
The V3 version of PoolTogether this time demonstrates its determination to move towards full decentralization. For a lottery product, fairness, transparency and decentralization are essential. As the tide of DeFi mining recedes, we look forward to seeing the steady public encryption products such as PoolTogether once again splash.
With the launch of this new version, Pool Together also announced the completion of a seed expansion round of more than $1 million led by ParaFi Capital. Participants include Robot Ventures, OpenLaw’s The LAO and MetaCartel DAO, and angel investor Synthetix’s Kain Stani Kulechov, CEO of Warwick and Aave.
