How to $POOL-Party like a Rockstar

Published in

Peeps Democracy

4 min readAug 25, 2020

PoolParty is combining DeFi (Decentralized Finance) and DAOs (Decentralized Autonomous Organizations) to give you and your peeps a whole new way to save together and achieve your financial goals. If you haven’t read our introduction post, we recommend starting here.

Great, now that you’re all caught up, let’s get to the How and Why.

FAQs of Pool Party

What does combining DeFi and DAOs mean?

First some definitions:

DeFi (Decentralized Finance): financial infrastructure that functions by code, not by banks…and generally allows people to lend or borrow crypto.
DAO (Decentralized Autonomous Organization): a club that is structured and governed by its members through code.

We love DAOs. We think the future is DAO. We’re ready to #JustDAOit. All organizations that have control over funds should have decentralized governance, from Product Teams to Nonprofits to Political Parties. And now, with the help of a PoolParty, you and your circle of friends (and friends of friends) can pool money together for whatever your collective hearts desire.

We also love DeFi. We wake up every morning before the sun to farm our yield and rotate our crops. Interest rates should be controlled by supply and demand, not a giant bank and money shouldn’t stop moving because it’s dark outside or the weekday starts with “S.” Moving money internationally shouldn’t take three plus days and cost $50.

PoolParty makes it so that investment club, startup project, or timeshare plan you’ve been kicking around with friends is easy to start and manage. We then added DeFi into the back-end, so now your pooled funds are earning significantly more interest than it would sitting in a boring ol’ bank. You can watch your Pool grow without giving up control of your assets (your friend Chad couldn’t drain the pool even if he tried), and you can gamify saving up large sums of money with others.

When does the PoolParty $POOL-Party start?

Soon, and if you join our Discord, you’ll be the first to know!

What do I need to build a Pool?

Internet access, some gas money ($ETH), MetaMask, some crypto like $USDC or $DAI to deposit, and the ETH wallet addresses of your co-founders. If you’re a crypto native, you’ve got this…if you’re not, we’ll help you figure it out in our Discord.

How do I create a PoolParty?

To create a Pool, you:

set a fundraising goal,
select the price of admission…this determines how many shares members receive each time they deposit more funds,
designate the primary currency of admission ($DAI, $USDC, $wBTC), and
choose your co-founders (get their ETH Addresses).

We’ll make it so that as soon as we launch, you can start your party with a simple form (and the info above). Get your swim trunks, friends, and (maybe) tiki drinks together…because this Pool Party’s about to get started and it doesn’t end after Labor Day.

Can I add new people to my pool later?

You sure can, but it is much cheaper/easier to have the core members of the Party ready before creation. People that come late to the party can create a proposal to join the Pool, and if they receive a positive vote, they will be issued shares in return for throwing some $DAI, $USDC, or other token in the Pool.

What coins can I throw into the pool?

Any ERC-20 can be tossed in the pool, but as of V1, we can only auto wrap $DAI, $USDC, $wBTC into the tokens on Idle.Finance and allow you to withdraw interest without RageQuitting shares.

Can I prevent someone I don’t know/like from jumping into the pool?

Absolutely. After the creation of a Pool, new members can only join by being voted in by the current members. You can even boot someone if you have a falling out. And when they leave, they leave with their share of the money.

Can someone take over a Pool against my will?

Probably not. The smart contracts are smart enough to prevent someone from gaining more than 50% of the Pool, unless you allow them to via vote. Secondarily, you’re also protected by the RageQuit and RageKick functions, both which allow you to protect yourself and your principal from financial decisions with which you disagree.

How long can I keep my PoolParty Pool going?

There ain’t no party like a Pool-Party pool party, ’cause a Pool-Party $POOL party pool don’t stop. In plain English, once your Pool achieves the set monetary fundraising goal, proposals can be created to spend, disburse, etc the Pool funds, but there is nothing in the contracts that says the Party must end. You can spend all of the money and close the pool, spend some of it on what you wanted to buy, or spend none of it and keep saving. It’s entirely up to you (and your fellow Party-goers). Plus, we’ll soon be introducing some $POOL rewards for Party-starters and Party-goers who keep the party going.