PoolTogether is an open-source decentralized blockchain protocol that employs “no-loss prize pools.” The system works by allowing users to deposit their cryptocurrency into a specific pool in exchange for prize-redeemable tickets. If a user deposits tokens into the liquidity pool, they are eligible to win prizes. PoolTogether created this model to incentivize token holders to increase the protocol’s overall liquidity, as well as to allow the project’s developers to earn passive income by lending out users’ assets while facilitating the prize redemption model.
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