PoolTogether Review
-
User Interface
-
Crypto Lottery
-
Interest & Prizes
-
Customer Support
Summary
PoolTogether is a crypto-powered savings protocol based on the Ethereum blockchain, which guarantees the protocol’s transparency, security, and decentralization. With the use of smart contracts on the Ethereum blockchain, transactions on PoolTogether can be tracked and verified in a secure and open manner. The protocol can also be decentralized because it was created on the Ethereum blockchain, which implies that no one organization is in charge of the money in the reward pools. Learn everything you need to know about this platform by reading our full PoolTogether review.
Pros
- User-friendly design
- “No loss lottery”
- Huge prizes for lottery winners
Cons
- Interest is lottery-based, not guaranteed
- Underdeveloped customer support
How does PoolTogether work? Well, PoolTogether is a crypto-powered savings protocol based on Premium Bonds.
But don’t let the term “bonds” fool you, the protocol aims to provide users with a fun and engaging way to save and earn interest on their crypto assets.
PoolTogether’s unique feature is its “no loss lottery” system, where users can earn interest on their savings without the risk of losing their principal.
All that interest accrued is then pooled together (get it?) into a prize pool and used for a weekly lottery to pay out portions of that lottery to individual users.
So, if you want to learn all about PoolTogether’s crypto savings protocol and whether it’s right for you, stick around for the rest of this PoolTogether review!
PoolTogether Features
The PoolTogether Protocol
PoolTogether is built on the Ethereum blockchain, which ensures that the protocol is transparent, secure, and decentralized, but it all means you’ll need a digital wallet.
The Ethereum blockchain provides a secure and transparent way to track and verify transactions through smart contracts, which ensures that users can trust the protocol and feel confident in their savings.
Additionally, being built on the Ethereum blockchain allows the protocol to be decentralized, which means that no single entity controls the money in the prize pools.
This decentralization ensures that the protocol is resistant to censorship and tampering—a key tenet of truly decentralized finance (DeFi).
Earn Interest on Your Crypto
The major draw of the PoolTogether platform is the ability for users to earn interest on their crypto savings.
The interest earned in the PoolTogether protocol is determined by the total amount of assets in the pool and the interest earned on those assets.
When compared to traditional crypto savings accounts, the interest earned can be significant (upwards of 5%).
Additionally, by participating in the weekly lottery, users have a chance to win a portion of the total interest earned, which can further increase the returns on their savings.
Weekly prizes stretch as high as $10,000, so winners can certainly receive much bigger prizes than traditional interest-bearing accounts.
PoolTogether Lottery
One of the core features of PoolTogether is the “no loss lottery” system.
The idea behind this system is that users can save money by depositing their crypto assets into a pool, which is then used to earn interest.
The interest earned is then used to fund a weekly lottery, where users can win a portion of the interest earned with savings tickets (lottery tickets).
This unique feature sets PoolTogether apart from other crypto savings protocols, as it provides users with a way to earn interest on their savings without the risk of losing their principal.
Users Deposit Funds
PoolTogether also allows users to save with a variety of different crypto assets, including Ethereum, DAI, USDC, MATIC, and more.
This makes it easy for users to save and earn interest on their preferred crypto assets. It also allows users to diversify their savings and take advantage of the different features and benefits of different crypto assets.
For example, users can buy DAI and save in a DAI pool to take advantage of its stability while also saving in Ethereum to take advantage of its potential for growth.
User Interface
Another important feature of PoolTogether is its user-friendly interface and simple onboarding process.
The protocol is designed to be accessible to even non-technical users, making it easy for anyone to start saving and earning interest on their crypto assets.
This feature is important because it allows users to easily participate in the protocol without having a deep understanding of crypto or blockchain technology.
How PoolTogether Compares to Competitors
PoolTogether is a unique and innovative protocol, however, it does have competition in the crypto savings space.
A major competitor of PoolTogether is Compound, another decentralized lending and borrowing platform.
Compound operates in a similar way to PoolTogether in that it allows users to earn interest on their crypto assets by lending them out.
However, the key difference between the two protocols is that Compound utilizes a traditional interest rate system, where users earn interest on their assets.
In contrast, PoolTogether uses a “no loss lottery” system, where users can earn interest without the risk of losing their principal.
Additionally, Compound only supports a limited number of crypto assets for lending and borrowing, whereas PoolTogether allows users to save with a variety of different crypto assets.
Overall, while both protocols offer a way for users to earn interest on their crypto assets, PoolTogether’s “no loss lottery” system and support for multiple crypto assets make it a unique and distinctive option in the crypto savings space.
Pool Token
The POOL token controls the PoolTogether protocol to ensure decentralization and community ownership.
Like with many crypto governance tokens, POOL holders manage protocol parameters to promote growth, but it also allows users to receive larger prizes in the prize pools.
The distribution of the POOL tokens serves as an additional incentive to deposit into the protocol when prizes are not yet large enough to achieve escape velocity.
People initially deposit primarily to receive the POOL token, but these deposits create larger prizes and help grow the reserve.
Conclusion: PoolTogether Review
In conclusion, PoolTogether is a crypto-powered savings protocol that offers a unique and engaging way for users to save and earn interest on their crypto assets.
Its use of a “no loss lottery” system and support for multiple crypto assets make it stand out in the crypto savings space.
Additionally, its user-friendly interface and simple onboarding process make it accessible to even non-technical users.
With the benefits of earning interest, diversifying savings and potentially benefiting from the growth of the crypto market, PoolTogether is an attractive option for anyone looking to save and grow their crypto assets in a fun and secure way.
