Despite criticisms, PoolTogether is most likely able to build a DeFi initiative with a new $1M equity injection, a new USDC pool coming to the protocol plus free lottery vouchers. The Ethererum based application announced this on their Twitter page expressing their excitement about the equity fund.
The lottery company has been the talk of the town recently with its no-loss lottery concept as it intends to develop a DeFi primitive for the ages. The no-loss lottery works such that it allows users get their deposits back if they don’t win as little stakes also can bring around $1,000 dividend weekly. PoolTogether 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 are only to put the little DAI up for exchange for lottery tickets and they stand a chance to win.
Currently, around $1m are locked in the pool as the larger load of the money is gotten 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 not having little odds.
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 to allow investors with future equity stakes.
PoolTogether DeFi initiative, Criticism pool company faces amidst equity funds
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 and the other fraction fault the protocols close base.
one that faces most criticism is how possible upgrade by the PoolTogether’s team contracts are. It explains individuals can choose to opt-out and collect back their funds. However PoolTogether’s efficiency is drawn from deposits that are not touched. This is according to an audit report, it says the protocol uses a 2 of N Gnosis multisig wallet as two members are required to endorse before contracts can be reviewed.
Previous matters, How PoolTogether used previous investors funding
Reportedly, prior to the PoolTogether DeFi initiative fund, it got funding last year Dec which it expended categorically on three things. The pool expended on security auditors while improving rewards for its ethical hacking programme.
PoolTogether also expended on Sponsored DAI which allows pool accrue interest ensuring users get a higher payout.The last thing the company expended on was ensuring that users get to play for free as playing costs nothing and the company makes nothing as income.