PoolTogether

Yield Aggregator

PoolTogether is a crypto-enabled savings protocol that allows users to pool funds to generate yield in return for a chance to win daily prizes. The platform aims to help users win the generated earnings through playing "no-loss" prize games.

Risk Rating
Best
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
PoolTogether introduced the concept of "no-loss" lotteries with users able to withdraw deposited assets at any time.
What we like less
Opportunity cost of losing potential interest as deposited assets generate no yield.
What it means for you
Offers you a simple and intuitive way to participate in daily prize draws with minimal downside risk.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: POOL
  • Tags: Yield Aggregator
Key Metrics
  • TVL: $2.7M (Rank #181)
  • TVL Ranking by Yield Aggregator: #0
  • Blockchain: Ethereum, Optimism, Polygon, Avalanche, Celo, Binance
  • Chain TVL
    • Ethereum: $2.57M
    • Optimism: $2.11M
    • Polygon: $81.04K
    • Avalanche: $71.81K
    • Celo: $42.06K
    • Others: $7.69K
Risk Assessment
Best
Protocol Code Quality
Protocol Maturity
  • Core protocol launched in 2021; maturity over one year minimizes technical risk as smart contracts are well battle-tested
  • Top 10% by total value locked reduces risk
  • Requires members of a DAO to vote on-chain for approving contract upgrades
  • Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
  • Low voting power concentration reduces risk
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to yield optimizers which deploy custom strategies to automatically manage user funds
  • PoolTogether is a no-loss, prize savings protocol taht generates yield by pooling all deposits and allocating them across different lending protocols like Aave or Compound; the yield generated in the last day is raffled to one of the depositors and your probabilities of winning are proportional to your share of the total deposits
Things to know about PoolTogether

How PoolTogether works

PoolTogether pays daily prizes through the interest earned on deposited assets. When an asset is deposited into PoolTogether, it is automatically routed to other decentralized finance protocols like Aave to begin earning interest. Users who deposit are automatically eligible for all future prizes until they withdraw. Users can add to or withdraw their deposits at any moment. However, the chances to win are based on the user's average deposit size over the prize period. PoolTogether relies on the ChainLink VRF (Verifiably Random Function) to choose winners in a veriably random way. Prizes must be claimed within 60 days being awarded. All unclaimed prizes will no longer be claimable after 60 days. There is no risk of losing money as long as the protocol works as intended.

How PoolTogether makes money

PlayTogether captures revenue through a reserve percentage that is charged on every prize. This reserve is kept in the prize pool and placed under control of POOL holders. Funds directed to the reserve make the prizes larger without diluting the odds of winning. Prizes in turn contribute to a larger reserve.

How you make money on PoolTogether

You can participate in daily lottery prizes by depositing assets on the PoolTogether platform. POOL token holders also control the reserve fund which continuously grows over time as more prizes are awarded.