PoolTogether V3: DeFi Lottery Platform to Become Fully Decentralized

News / 22.10.2020

PoolTogether, the well-known zero loss lottery protocol, has announced the V3 version of its protocol. According to a blog draft shared with Decrypt, the protocol will start to accept more assets, allow developers to build on top of it, and become fully decentralized with the V3 version. The protocol will also see a transition from its team to Chainlink VRF (Verifiable Randomness Function) for randomly choosing the winner.

What is PoolTogether?

PoolTogether is a protocol that promises a zero-loss lottery game where one random user wins, and everyone else gets their money back. That’s why – zero loss. It might sounds too good to be true, but it makes sense once you understand the underlying concept behind it.

So, every week, several users stake DAI stable coins in a pool. The protocol put this sum of stablecoins to use in liquidity pools to earn interest. By the end of the week, one random user wins all the interest. At the same time, the remaining users get their money back. Therefore, making it a zero loss game for all the participating users.

With Version 3, the protocol claims bigger payouts, better chances of winning, more rewards, new games, and new assets. The protocol will also support more ERC-20 based tokens such as YFI, TUSD, etc. The new version will also do away with the PoolTogether team administrating the reward. Therefore, the protocol has opted for Chainlink VRF.

With the announcement, PoolTogether co-creator Leighton Cusack said,

“Decentralization has always been our goal, so we see this as a continuing step of a long term mission. Ultimately, it’s important because building a system that doesn’t rely on any single person or entity can have a much greater impact on the world.”

V3 also talks about the possibility of extending the protocol and allowing developers to build new games on top of it. Version 3 of the protocol also promises to give away rewards to all the participating users. If the pool is big enough, it could be done by distributing the interest. The major chunk of it could go to the winner and the rest of it to the remaining participants.

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"