PoolTogether, the no-loss lottery, upgrades to version 3.0, introducing the yVault prize pool and rewards for ticket holders.

The core concept of the lossless lottery PoolTogether is to allow players to buy lottery tickets with money. The pooled funds will be deposited in the DeFi lending platform Compound to earn interest. During the weekly draw, the interest earned from the pooled funds will be given to the lucky winner. Even if you don't win, you can continue to play, and you can also redeem your prize when not playing. Participants basically do not incur any financial losses, hence the name "lossless lottery."

On the 23rd, PoolTogether announced the launch of V3, with many new gameplay options. In addition to introducing more types of prize pools, decentralized governance and customizable gameplay seem to be major highlights. With the impact of liquidity mining, the traditional winner-takes-all model of lotteries has been neglected for a long time, and this restructuring can be seen as PoolTogether's response.

As for V2, it will continue to operate, and the platform will not actively migrate funds, but will give users the freedom to choose.

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What changes does PoolTogether V3 bring?

More interest sources included: While PoolTogether's default prize pool interest source is Compound, the new protocol in V3 will introduce different interest sources to increase the prize pool. For example, the yVault prize pool (currently not open).

Earning rewards by holding tickets: Developers can adjust the Prize Strategy to reward holders in the form of tickets, allowing them to earn more tickets by holding onto them. According to PoolTogether's documentation, rewards can be withdrawn at any time. Rewards can be in the form of ERC-20 tokens or ERC-721 non-fungible tokens (NFTs).

Fair credit scoring: To prevent large holders from injecting large amounts of funds just before the draw to increase their winning chances without contributing much to interest, V3 sets a credit rate that calculates the actual prize pool contribution based on the funds' duration. When the credit rate reaches its limit, the player's bet is considered "complete."

In addition, there are efforts to enhance decentralization by removing the "manager key" to prevent contract manipulation; referral rewards; and to increase fairness in winning, Chainlink's random number feature is utilized.

Inspired by Liquidity Mining?

We can see that PoolTogether V3 is more decentralized, emphasizing the removal of the manager key to ensure players know that rules and prize settings cannot be altered. It also opens up Discord for players to discuss new prize pools to introduce, providing more space for participation.

Introducing referral code rewards, along with additional rewards set for ticket holders in ERC-20 or NFT forms, diverges from the traditional "lottery" concept and leans more towards liquidity mining, aiming to attract more participants willing to keep assets in the pool for extended periods. In addition to the incentive of winning a jackpot, small ticket holders can receive fixed returns or more tickets based on the prize pool settings, enhancing playability.

This time, PoolTogether V3 does not focus on issuing governance tokens with low real utility that might lead to being exploited for profit; instead, it provides a more diverse range of incentives for participants, embodying a more sustainable concept. However, both Compound and yVault are currently facing a period of stagnant interest rates, and finding new strategies to attract more funds will be crucial for future growth.