Category: Prize Savings
Recommended Capital: $100+
What is "No Loss Savings"?
- think of it as a savings account
- you deposit your USD (USDC stablecoins) into one big pool with other depositors.
- pooled funds are then lent out in DeFi, and earn interest 💰
- this interest = the daily prize money.
- depositors selected randomly to split the interest-prize money.
- while random selection, the more $ deposited, the higher chance of getting picked.
You Probably Have Some Questions:
Q: How do I know its not a scam?
A: PoolTogether is open source, meaning all of the randomness of the winners picked can be seen by looking at its public code. It can easily be audited (and is!)
Q: Is my money safe here?
A: While your money is in good hands, there area always risks from bad actors trying to attack the system. There haven't been any incidents yet, and also $100 million is currently deposited into lottery pools here, so that should give you some confidence.
Q: If no one loses their money, where does the prize money come from?
A: PoolTogether takes everyone's deposits, and directly puts them into high interest 'savings' accounts on the Compound app. With so much money being pooled, a lot of interest is earned in a week's time. At the end of the week, the interest earned from Compound, is distributed to the winner(s).