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An example I find interesting and easy to explain is Pool Together which is a no-loss lottery where you can buy $10 in lottery tickets for a chance at a $3,000
by Sargos 5y ago
An example I find interesting and easy to explain is Pool Together which is a no-loss lottery where you can buy $10 in lottery tickets for a chance at a $3,000 weekly prize but if you don't win your tickets still work for the next round and even 10 rounds from now you can withdraw your full $10. It works by putting everyone's money in the same account which earns ~6% interest savings account and the winner actually gets the accrued interest as prize money.
This project was built by a team of maybe a dozen people but is rather complex and needs a stablecoin (DAI from MakerDAO), an interest bearing account (Compound), an account system (Ethereum public/private key), and the running of the protocol (the smart contacts are run free for devs by Ethereum and users pay to perform actions) to make the system work. All of these dependencies took other teams years to build and the small Pool Together team leveraged that to make a cool little product by just adding a small amount on top. The ability for small teams to make functional products which can then be used by others to quickly spin up their own experiments and products is incredibly exciting to me and it's a much better method of development then the traditional closed vertically integrated tech giant where innovation is limited by bureaucracy.
- MichaelZuo 5y agoIs there an example that is not related to gambling or moving around money? As it doesn’t seem to be very productive in countries where online gambling is restricted or regulated…
- Dylan16807 5y ago6% interest paid by who?
- Sargos 5y agoCompound is a lending protocol so people take out collateralized loans out and pay an interest rate on that loan which is paid to the lending pool the money is deposited into.
- deleted 5y ago[deleted]
- Godel_unicode 5y agoIt's a Ponzi scheme, which depends on more people buying in.