About Pool Party
“Pool Party” is a community which pool their funds into DeFi pools and a lottery is drawn to see who wins the proceeds.
Players or “Savers” participate by contributing to the pool. Contributions are rewarded with “tickets” which go into the weekly draw to win ALL the DeFi yield generated by the relevant pool.
There are “No Losers” as tickets are never purchased so effectively no negative outcomes.
All participants may withdraw their deposit at ANY time and everyone involved keeps their money.
The Defi Protocols that Pool Party choose to use are trusted. Such pools are Solend and Marinade.
The raffle picker system “Switchboard” runs (VRF) Verifiable Randomness for secure and on chain randomness.
Pool Party is non-custodial and runs on smart contracts. This means that only you may access the funds which you have deposited into the pools.
***NOTE*** Pool Party has not yet been audited from a third party and use at your own risk.
How do the Pools and Lottery work?
Firstly, anybody may deposit into these pools and have a chance of winning, there is no requirement to hold an NFT to participate in the pools.
Current pools available are Sol, USDC, and BONK.
Minimum deposit is 0.1Sol, 1 USDC or one BONK.
Yes these deposits may be withdrawn at any time BUT if you withdraw within 7 days of your deposit a fee of 0.5% will be charged as a fair play fee.
The funds deposited into the pools are used to generate yield on partner protocols.
The yield is created is what makes up the prize pots for the lottery.
Odds of winning the lottery are based on your contribution. The greater the share size contributed the greater the chances of winning the pool.
Winners are picked weekly on a Thursday via a secure verifiable on-chain picker.
Referral links can be provided for friends. If friends use your referral link and win the weekly draw 10% of the jackpot goes to you.
Advantages for NFT Holders
NFT holders have the added advantage to participate in the “Eternal Lottery”
The NFT serves as a ticket into the eternal lottery pool that increases over time. Pre sale price was 2 Sol for the NFT.
1 Sol is deposited into a Lottery pool, while the other 1 SOL token is sent to the Pool Party treasury to fund further development of Pool Party.
The funds in the Lottery pool are used in DeFi to generate yield. 50% of the yield is used for a weekly lottery payout to NFT holders, giving NFT holders a lottery ticket in a lottery that never ends. Hence the name “Eternal Lottery”. The other 50% of the yield is deposited back into the pool, increasing its size (and by that its prize pots) over time.
The team has put together some calculations as to projected yields and lottery pots here.
Royalties will be distributed in the same way.
Governance
Holding a PoolParty NFT does in fact give you a vote into the future direction. This could be anything from how the future funds are used, the draw frequencies and more.
Party token access
The NFT also provides the opportunity to receive Party tokens. These tokens will serve as the vehicle for community governance of the broader Pool Party protocol. A large potion of these tokens have been allocated to early supporters and community members.
| Team Members | Role |
|---|
C2yptic – Operations and Business Development
Cats Pajamas – Operations and Business Development
Avocado – Full Stack Developer
AY – Developer
Elli – Designer
Cherry – Product Research
Stusha – Community Manager
Hoofbite2k Community Collaborations
BBJK26 – Community Streamer
NFT projects often exhibit a tendency to construct intricate and gamified experiences. In contrast, Pool Party adopts a distinctive approach centred around simplicity. Given the current illiquid nature of NFTs, a significant portion of individuals find their funds either tied up in NFT’s or already engaged in pools. The project introduces the capability for speculative endeavours while maintaining a relatively low risk nature.
The concept of the “No Loss Lottery” is straightforward, raising eyebrows as to why it has not been previously explored. It is important to clarify that the risks involved pertain to Impermanent Loss and loss of potential accrued yields from staking. These accumulated yields constitute the reward for the winner of the lottery. The Eternal Lottery stands as an exclusive incentive for NFT holders, presenting potential for modest beginnings to evolve into a substantial draw that garners attention to the project.
Final Thoughts
Pool Party has devised a business model supported by a sustainable revenue stream, characterised by minimal overhead costs. However, it does confront several challenges. The aesthetic aspect of the art might not rank as the most compelling feature, discouraging holders to use as a profile picture across socials. Nevertheless, it is entirely possible that social engagement could be fueled by individuals sharing their lottery wins.
The utilisation of governance tokens raises some query. While designed to empower the community history has demonstrated that communities often exhibit selfish tendencies, potentially prioritising short-term gains over the welfare of the project. While Pool Party exhibits a promising future, its initial success is dependant upon marketing and the successful accumulation of pool participants to generate substantial returns for the lottery.