Community Prize Pools
It’s now possible for anyone in the world to deploy a no loss prize pool for any token.
No loss prize games are one of the most popular consumer financial products in the world combining a chance to win prizes without risking your deposit. Currently over $100 billion is saved in no loss prize games by tens of millions of people globally¹.
Now there is a true DeFi primitive. Just as anyone can create a Uniswap trading pair or a Balancer pool, anyone can deploy a no loss prize pool with the PoolTogether Protocol.
How it works
All prize pools share the same three key characteristics 1) no loss 2) the ability to withdraw funds at anytime and 3) chance to win prizes. Prize pools are differentiated with 1) the token you deposit 2) the yield source generating the prize 3) the way the prize is distributed.
Anyone can create a new prize pool with the prize pool builder. At launch the builder supports Compound Protocol as a yield source as well as “stake prize pools” which have no yield source and the prize is added by a third party.
Community Prize Pools & Governance Prize Pools
Anyone can create a community prize pool and PoolTogether governance does NOT have any control of them. They display on the “Community Pools” tab of the website.
Community Prize Pools use the same code as the governance managed ones on app.pooltogether.com. The prize pool contract which stores user deposits is non-upgradeable securing users funds. This means the prize pool creator can not steal your deposits. However, the Prize Pool creator does control a limited set of parameters to administrate the prize pool including the early exit fairness fee. The maximum this can possibly be set to is a 10% early exit fee that decays linearly over 4x the prize period. In most cases it will be much less.
The First Community No Loss Pools
Several protocols have already created community prize pools.
To create your own prize pool for any token visit the builder and read the documentation. If you have questions join the community on Discord. Watch
