Lottery — Explained
The Lottery offers users the chance to win big every day at zero cost — this doc tells you everything you need to know about our latest Invest product and how it works!
Summary
The Lottery is our gamified, no-loss Invest product, offering users the chance to win big every day at zero cost! With daily draws, rolling prize pools and anytime drawdown, the Lottery offers a fun yet flexible approach to investing. We’ve provided a full breakdown below to help you understand everything there is to know!
Lottery Explained
The Lottery functions as a daily no-loss lottery. Essentially, this means users can play for ‘free’, with users receiving lottery tickets at no cost, and deposits staying the same over the deposit period. In addition, all user deposits in the Lottery can be drawn down from the liquidity pool at any time (subject to processing periods).
When users make a deposit, their funds are placed in a collective liquidity pool which earns interest daily at a rate of 4% APR*. This liquidity pool is used to fund various off-chain debt financing deals, helping to generate a steady return and drive financial inclusion in emerging markets, with Gluwa Capital acting as the intermediary.
All daily interest accrued by the collective liquidity pool is added into the Lottery ‘prize pool’. At the end of each daily prize period, a randomized draw takes place. If there is a winner, they receive all the interest in the prize pool, sent directly to their Gluwa Wallet. If there is no winner, then the accrued interest is rolled-over into the next prize period.
Your odds of winning are directly proportional to your relative contribution to the collective liquidity pool. If your deposit constituted 20% of the liquidity pool, then your relative odds of winning vis-a-vis fellow depositors will also be 20%. This means the more you deposit into the Lottery, the greater your odds of winning.
How the prize draw works
The Lottery disburses winnings via a daily prize draw, with total user entries into each prize draw determined by a ticketing system. For every $1 sUSDC-G you have deposited into the collective liquidity pool, you are issued with tickets into each prize draw at a ratio of 1:1. This means:
$1 sUSDC-G = 1 ticket
Tickets are only issued for deposits made/held 24 to 48 hours before the draw time (this is called the opening period of the draw). This means deposits must be at least 24 hours old in order to be eligible for prize draws.
During each prize draw, every participant is given a ticket range determining their ‘winning numbers’. For example, a user who deposited $500 sUSDC-G may be given a ticket range from 1–500. If any number between 1–500 is selected, then they will win the prize draw. The more tickets you have, the higher your odds of winning are.
Gap tickets are also issued during each prize draw. Gap tickets are issued to allow for a ‘no-winner’ scenario, in which case the prize pool rolls over for an even bigger prize at the next prize draw.
For each draw, a single ticket will be randomly selected as the winner; this also means there can only ever be single winners. To ensure fairness we use 3 (1 on-chain and 2 external) factors of randomization when selecting the winning ticket. These are:
The formula determining any single user’s winning chance (X) is as follows:
Examples:
We’ve provided some examples below using different user and total deposit values to help you understand how these odds work in practice…
User’s winning chances with different individual user deposit amounts.
User’s winning chances with different total eligible deposit value sizes (Liquidity pool size).
Users can achieve a higher chance of winning by 1) depositing more money or 2) holding a higher proportion of eligible tickets.
Dry, maths-heavy blog posts got you feeling lucky? Maybe it’s time you joined the world of OpenFi investment and opened a Lottery. Simply download the Gluwa App to start your Gluwa Invest journey today!
*Individual returns may vary. This number (4% APR) is subject to change, with any changes announced in advance.
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About Gluwa
Gluwa is an Open Finance platform, connecting capital from developed markets to emerging market lending opportunities using blockchain technology. By providing the decentralized infrastructure rails to raise and disburse capital anywhere in the world, investors can use the Gluwa Investplatform to partake in debt-financing deals with emerging market fintech lenders, earning up to 20% APR.
