PoolTogether’s lossless lottery surpasses the total blocked value of $ 50 million after its token Airdrop

Lossless lotteries seem to have found a perfect match between product and market.

Just a few days after your Airdrop governance token, POOL, the so-called “savings game” PoolTogether, easily exceeded a total value of 50 million US dollars (TVL). Currently over USD 51 million distributed across the lottery pools of DAI, USDC, UNI and COMP.

PoolTogether aptly bundles user funds and pays them into savings-oriented decentralized financial protocols. Interest is used as prizes for randomly selected winners and seed capital is returned to buyers, creating a “loss-free” lottery.

PoolTogether’s lossless lottery surpasses the total blocked value of $ 50 million after its token Airdrop
PoolTogether’s lossless lottery surpasses the total blocked value of $ 50 million after its token Airdrop

While the project stalled below $ 10 million in TVL for months, Growth has been explosive since the POOL governance token Airdrop on Feb.17. The project was valued at $ 34 million in TVL a day ago, according to a team tweet, and has grown 33% since then.

The founder of PoolTogether, Leighton Cusack cites the POOL distribution model as a partial explanation for the growth of the protocol.

“As part of the initial decentralization, 5% of the entire POOL offer (500,000 tokens) was allocated to be distributed automatically and loss-free to all depositors of the prize pool for the next 14 weeks”, he said in an interview with Cointelegraph.

The sales program, which is conceptually similar to Liquidity Mining, is part of a larger effort “Put the token in the hands of the users.” According to Cusack, of the 1.5 million tokens distributed on the 17th (15% of the total supply), 600,000 were claimed.

Another reason for the growth is quite organic: the more depositors, the more attractive the prize pool.

“The prizes are bigger than ever. Right now, protocol is on track to be giving away more than $ 60,000 in prizes over the next 7 days. So the bigger prizes will attract more people to deposit.” He said.

The next step for the protocol will be to capitalize on the promising growth. Integrating with more austerity protocols and moving to Layer 2 to bypass Ethereum’s rising gas fees are priorities, according to Cusack, but ultimately, those choices are now out of reach.

“With the protocol now decentralized, it really is up to the community members to drive this process forward. There is already a large community around the protocol and if anyone wants to participate, they just have to join Discord.”

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