Beefy Finance has released embargoed information on a no-loss lottery project on Binance Smart Chain.
Everyone’s a Winner on Moonpot
The new upcoming lottery protocol is known as Moonpot. It looks to become the first lottery for investors where the risk of losing money is nonexistent. The news was first teased on July 9th by way of a Twitter post, providing a short video.
To elaborate, Moonpot is a win-win lottery protocol on Binance Smart Chain (BSC). The platform’s unique innovation works by having users deposit funds into an interest-bearing savings pot (also referred to as a ‘moonpot’).
“Moonpot goes beyond the concept of a no-loss lottery,” stated Mooncow from Beefy Finance. He continued to mention that, “You don’t pay for tickets like you would in a traditional lottery. And it is a win-win because while your assets are staked, you also earn interest.”
Beyond a No Loss Lottery?
Everyone deposited in the pots will receive a free lottery ticket. This means their funds are never at risk for loss — besides price fluctuations of the deposited crypto.
Not only that, but because of interest, a user’s deposit will subsequently grow in the Moonpot savings pot.
For winning Moonpot’s lottery, the lucky winner will be awarded a prize worth hundreds to thousands of dollars paid in crypto. For better understanding, let’s use an example:
James deposits funds into a Moonpot savings pot.
James sees his funds grow over time thanks to interest being paid back to him for staking his funds.
For depositing funds into a savings pot, James is simultaneously entered into a no-risk Moonpot lottery each week.
Every week, James has a chance to win the massive Moonpot lottery jackpot for keeping his funds staked in the savings pot.
The genius of Moonpot is whether or not James wins or loses the lottery, his deposit is never at risk and continues to grow thanks to the interest returned to him by the Moonpot savings account.
The Technicalities Behind No-Loss Lotteries
Moonpot has developed a very unique but straightforward solution that allows users to enter a lottery without risking the loss of personal funds.
Moonpot groups users’ funds together and uses the pool of funds to earn returns from different DeFi markets. This is the source of the prize money.
Moonpot utilizes and groups users’ funds in the savings pots to harvest massive APY returns found across DeFi. In turn, all users who have deposited funds will earn a ticket to the Moonpot lottery.
To create the lottery, some of the yield is utilized to fund the Moonpot — alongside additional $POT rewards.
Moonpot Security / Audits
The team behind the Moonpot project is the very accomplished team behind Beefy Finance, one of the top projects on the BSC.
How is Moonpot Different From Other Projects on BSC?
Moonpot’s value proposition is far different than any project seen on the BSC. Their win-win algorithm ensures that users benefit from interest with a massive opportunity to win.
Every week users will have the chance to win a massive lottery on top of the interest they will be earning from their staked crypto.
Mooncow commented on the novel system, elaborating that “Some DeFi platforms provide some of those elements either as a paid lottery, or a no-loss lottery that only has prizes, but Moonpot, thanks to the Beefy vaults it is built upon, offers you both.”
Source : bsc.news