How to Earn Crypto with No-Loss Savings Game
How to Earn Crypto with No-Loss Savings Game
Decentralized finance (DeFi) is one of the most exciting aspects of the global crypto markets. From lending and borrowing to yield farming and insurance, DeFi has morphed into a transformative Internet-native ecosystem that enables participants to earn yields on their digital assets.
Arguably one of the most innovative new financial products found in the DeFi markets are no-loss savings lotteries, where participants deposit funds into a pool and stand a chance to win a weekly pot without losing their holdings.
In this guide, you will learn how to earn about no-loss savings games and how you can use PoolTogether directly in your Trust Wallet to (potentially) win crypto.
What is No-Loss Savings in Crypto?
No-loss savings (NLS), also known as Prize-Linked Savings, refers to a model where participants deposit digital assets (typically stablecoins) into a pool in the form of tickets. In addition to earning interest, participants have the chance to win the lottery.
The interesting thing is that, although you may not win the lottery, you will never lose the amount you spent on your tickets. What’s more, you can increase your chances of winning by stacking up more tickets.
Another thrilling fact is that you can win more than once if one or more of your tickets get randomly selected. What’s more, you can get your money back anytime by exiting the pool and withdrawing your tickets into the stablecoin you deposited.
What is PoolTogether?
PoolTogether is a DeFi protocol that leverages the no-loss savings/lottery model to allow users to earn interest on stablecoins and potentially win weekly lotteries.
The dual-chain protocol has been around for over three years, reliable enough to gain the trust of thousands of users, with up to $180M deposited and distributing $120K prizes weekly.
How Does PoolTogether Work?
PoolTogether has a simple premise: get tickets, win prizes, and never lose.
They offer up to 6 pools — USDC, DAI, SUSHI, weekly drawings on the Ethereum and Polygon blockchains.
Essentially, you deposit your stablecoin, e.g., DAI or USDC, into a pool. Each stablecoin you deposit equals a ticket in the pool. For example, 20 USDC = 20 tickets in the USDC pool.
The funds are shared evenly by five selected winners for every pool — a grand prize winner and four runner-ups. The grand prize includes an additional reward — a loot box from donations or other coin yields. Thanks to a recent update, loot boxes can contain up to $50k in crypto or non-fungible tokens.
On Pooltogether, participants earn interest in POOL — the platform’s native token. Every dollar you deposit into a pool generates an annual percentage yield (APY). The USDC pool, for example, generates up to 7% APY. The token also allows holders to vote on ideas and participate in governance.
Once you deposit into a pool, you become instantly eligible to win the next drawing. The interesting thing is you do not have to reapply or buy new tickets every week, so long as your tickets remain in the pool and you have as much chance of winning as newer participants. Also, you can exit the pool at any time. Although, the platform charges a 10-day early withdrawal fee that reduces to zero over the 10-day timeframe.
PoolTogether works in a clear transparent way. For every pool, you can check and audit all transactions on Etherscan.
What Does a Typical No-Loss Savings Pool Look Like?
Each pool contains several details: no. of users, total prizes, pool participants, and others.
Here’s a quick rundown:
Total prize distributed to the winners — gotten from interest earned from collective funds of all the participants
Winners’ details — wallet addresses, how much they earned. Players and addresses and how many tickets they hold.
Loot box and its contents — received from other pool yields and donations. Usually contains stablecoins and/or NFTs.
Pool Statistics — total deposits, past prizes, sponsorships and reserves, and a graphical illustration of deposits.
Where Do the Funds Come From From?
PoolTogether pools all users’ funds together and deposits them into a stablecoin pool on Compound — a DeFi lending protocol. Then, the Dapp rewards winners weekly with APYs generated from total pool funds.
By leveraging Compound’s lending protocol, PoolTogether can earn enough to pay winners weekly and also pay users’ interests in POOL.
As said earlier, it’s an open-source protocol — meaning all transactions can be seen on the website and verified on Etherscan.
How to Earn Crypto with PoolTogether
Follow these simple steps to join this decentralized no-loss savings game.
Fund your Trust Wallet with a stablecoin (e.g., DAI, USDC) and ETH (for gas fees).
Open the DApp in your Trust Wallet DApp Browser. Click ‘Connect your wallet’ and select ‘Trust Wallet’ to connect your wallet.
Click on a pool (USDC pool here).
Click on Deposit and type in the amount. Remember that one USDC equals one ticket, and the higher the number of tickets, the higher your chances of winning. The algorithm automatically generates weekly winning odds (changes over time).
Click on Approve and Deposit. And that’s it! Your funds are in the pool accruing POOL yields, and you have the chance of winning a weekly lottery.
While crypto markets have been unstable with extreme price swings in recent times, PoolTogether is doing a great job providing another way to put your crypto to good use. By leveraging Compound, PoolTogether redefines savings and paves the way for responsible gambling in a decentralized space.
If you have some crypto lying around, you might want to consider buying tickets on PoolTogether to win some lottery potentially.
To start the path of responsible gambling, download Trust Wallet today.