Despite criticisms, PoolTogether DeFi initiative gets an additional $1.05 M equity injection which could further attract participants to the savings protocol, in addition to the free lottery vouchers. The Ethererum based application announced this on their Twitter page expressing their excitement about the equity fund.
We’re happy to share PoolTogether has raised $1.05 million to expand the prize linked savings protocol. Led by @IDEOVC with participation from @ConsenSysLabs and @dtccapital.
Here are a few of the immediate benefits to PoolTogether players and developers. 🏆
— PoolTogether 🔴__🔴 (@PoolTogether_) February 3, 2020
The lottery company has been the talk of the town recently with its no-loss lottery concept which allows users to get their deposits back if they don’t win. Little stakes also can bring around $1,000 dividends weekly and the PoolTogether Defi Initiative payout this week is already estimated at $1,530.
Also, serial DeFi users who do not have much DAI in their wallet do not need to add money into any money market like Compound. Such users need to exchange the DAI for lottery tickets for a chance to win.
Currently, around $1m are locked in the pool as the larger load of the money is taken through sponsorship. This entails that provisions are made only for liquidity and not part of the lottery. This assures that users have a higher chance of not losing with little token holders having the same odds of winning.
IDEO Lab Ventures sponsored $1m investment in the lottery company alongside ConsenSys and DTC Capital. The money is said to not be part of the protocol but allows investors with future equity stakes.
PoolTogether DeFi initiative faces criticisms
The gambling company has been a subject of criticism for different reasons. In the Ethereum world, it is believed that the fund is only a misuse of funds.
Most criticisms are focused on the possible upgrade of contracts by the PoolTogether’s team where individuals can choose to opt-out and collect back their funds. However, PoolTogether’s efficiency is drawn from deposits that are not touched.
According to an audit report, the protocol uses a 2 of N Gnosis multisig wallet as two members are required to endorse before contracts can be reviewed.
PoolTogether use of previous investors funding
Reportedly, prior to the PoolTogether DeFi initiative, funding on December 2019 is disbursed categorically on three things. The pool spends on security auditors while improving rewards for its ethical hacking program.
PoolTogether also spends on Sponsored DAI which allows the pool to accrue interest ensuring users to get a higher payout. The last thing the company spends on is ensuring that users get to play for free as “playing costs nothing and the company makes nothing as income”.
Featured Image by Pixabay
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