PancakeSwap Integrates Chainlink VRF Oracle to Draw Lottery Winners Fairly

A collaboration between PancakeSwap and Chainlink is paying off and paying winners with PancakeSwap’s ‘provably fair’ V2 Lottery.

Random Number Generator To the Rescue

Prize pools are up to $1.165 million. The lottery is enticing agrowing numbers of players to buy a ticket and take a chance. To make V2 of PancakeSwap a reality, the team turned to Chainlink VRF (Verifiable Random Function) as a source of manipulation-resistant randomness. 

According to a recent PancakeSwap blog, Version Two of their Lottery proves to be a hit with users.


As PancakeSwap explains, finding the right source of randomness was no easy task: “On-chain RNG solutions like block hashes can be subject to miner manipulation, while off-chain RNG solutions are opaque and provide no proof of integrity. Overcoming these hurdles is why we selected Chainlink VRF for the PancakeSwap Lottery V2.”

The platform has faced scrutiny as of late due to a lack of transparency to the lottery system. The integration of ChainLink should do well to quiet the critics. 

Why Chainlink VRF?

Chainlink VRF combines several functions to ensure provably fair randomness. The first part consists of block data that is still unknown when the request is made; the second is the oracle node’s pre-committed private key.

The result is a tamper-proof random number generator where players can instill faith. Users can be sure that the selection is as random as possible. Each request for randomness to the Chainlink VRF generates a random number and cryptographic proof demonstrating how that number was created.

The PancakeSwap Lottery V2 contract only accepts the random number if the proof is valid. This means that not even the PancakeSwap team can predict the random number generated and approved. 

That winning feeling | Source

Ticketing Process

As we previously reported, each ticket for the lottery is $5 –– but bulk buying discounts apply to users able to purchase up to 100 tickets at any one time. The PancakeSwap Lottery page can be found here:

The lottery itself is a six-number draw, and users must match at least two numbers to win. In the instance of matching two numbers, players are guaranteed to collect some kind of reward.

Match all four numbers to win or split 50% of the pot.

Match three numbers to win or split 20% of the pot.

Match two numbers to win or split 10% of the pot.

Crucially, the remaining 20% of the prize pool is burnt, meaning that the lottery system acts as a deflationary token mechanism for CAKE.

Concluding Thoughts

As with any form of gambling, users want to know they are getting a “fair” deal and not being taken for a ride. PancakeSwap believes the integration of Chainlink VRF, with its provably fair random number generator, should offer that level of assurance. The integration should be a welcoming sign for all lottery participants. 

What is PancakeSwap?

PancakeSwap is the leading Decentralized Exchange (DEX) on Binance Smart Chain (BSC), with the highest trading volumes in the market. PancakeSwap is the most used automated market maker and farming projection on BSC. With lower trading fees than other top decentralized exchanges, the protocol offers a secure place to farm yields thanks to their Syrup pools. PancakeSwap will continue to provide high volume and lots of liquidity to BSC, especially as the world of Decentralized Finance grows.

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