What is the Securing DeFi with PoolTogether created with?
Bitcoin marked the beginning of software eating money. Ethereum is now fulfilling it through features to blockchain technology that enabled the creation of an open financial system – now known as DeFi. Anyone with a funded Ethereum account can now access novel finance applications enabled by blockchain technology and currently live on Ethereum.
Quantstamp is facilitating the future of DeFi by enhancing the security of leading open finance projects like PoolTogether, a no-loss lottery and innovative savings account application.
No Loss Lottery
Traditional lotteries have a low chance of winning, and have a negative expected value — in other words, they are not profitable for ticket buyers. No-loss Lotteries turn this on its head. Even if your ticket doesn’t win, you still get your money back at the end of the game. Whereas the money paid for a traditional lottery ticket is gone forever, with a no-loss lottery you never “lose”.
Another name for no-loss lotteries is prize-linked savings accounts, which hints at their real nature. In fact these are gamified savings accounts, which incentivize saving through the promise of a large cash prize to a lucky winner. Instead of punishing those who participate in lotteries, it turns them into savers.
PoolTogether is a no-loss lottery implemented on Ethereum that uses DAI, a stable cryptocurrency pegged to the US dollar. DAI is used instead of fiat currencies because it leverage the benefits of blockchain technology while not suffering from the volatility of traditional cryptocurrencies. Pool Together is also permissionless, and onboarding is seamless – just load up a metamask wallet with DAI and head on over to pooltogether.us.
With PoolTogether 2.0 users can now decide to leave their funds in the pool for the next round. This new mechanic allows users to treat PoolTogether like a savings account, further incentivizing healthy financial habits.
We’re happy to enhance the security of both the initial implementation of PoolTogether, as well as this new upgrade.
Unlike traditional software, DeFi applications directly handle digital assets with real financial value. That makes security essential core infrastructure, not a nice to have feature.
The top blockchain projects choose Quantstamp to secure their applications. Interested in receiving an audit with us? Visit our Audit page for more information.
Both Securing DeFi with PoolTogether will have great applications in the future