POOL

Overview of POOL

The POOL token, also known as PoolTogether, is a decentralized finance (DeFi) application that was launched in 2019. It was founded by Leighton Cusack, Brendan Asselstine, and Chuck Bergeron. The primary function of the POOL token is to facilitate the operation of a protocol for no-loss prize games which is built on the Ethereum blockchain. Users deposit funds into the PoolTogether application which are then lent out via Compound, generating interest. This collected interest forms the 'prize' for one lucky participant. The selection of the prize recipient is governed by a secure and randomized algorithm. The token holders also have the ability to govern the future direction of the protocol in a democratic and decentralized manner. The POOL tokens can be stored in digital wallets such as MetaMask or Ledger, and are available for trade on cryptocurrency exchanges including Binance, Huobi, and Uniswap.

Pros and Cons

What Makes POOL Unique？

The POOL Token, part of the PoolTogether protocol, introduced innovative elements in the DeFi space by combining elements of traditional savings systems with the benefits of cryptocurrency and the principle of a lottery.

Traditionally, in a lottery, only one participant reaps the rewards while others lose their investment. The PoolTogether protocol subverts this model through the concept of a no-loss prize game. Users deposit funds into the PoolTogether application and these funds are then lent out via Compound, a DeFi lending protocol. The interest generated is what becomes the 'prize' for the game, but the main principle remains intact: no individual loses their initial deposit. This introduces an entirely different dynamic to the conventional lottery model, creating an incentivized saving system.

How Does POOL Work？

POOL is the native token of the Serum decentralized exchange (DEX). It is used to pay for transaction fees on the exchange, to participate in governance, and to stake for rewards.

POOL is earned by liquidity providers (LPs) who stake their tokens in Serum's liquidity pools. LPs earn a share of the trading fees generated by the pool, as well as a portion of the newly minted POOL tokens.

To stake POOL, you can deposit it into a liquidity pool. There are a variety of liquidity pools available, each with different tokens. When you deposit your POOL into a liquidity pool, you are essentially lending it to the pool so that it can be used to facilitate trades.

Exchanges to Buy POOL

Below are some well-known exchanges which support purchasing POOL tokens.

Coinbase: A popular digital currency exchange platform that provides a user-friendly experience for buying, selling, and storing cryptocurrencies.

See this link for details on how to buy POOL：https://www.coinbase.com/how-to-buy/pooltogether

Binance: One of the largest cryptocurrency exchanges with a wide range of trading options and innovative features, offering a diverse selection of cryptocurrencies.

See this link for details on how to buy POOL：https://www.binance.com/en/how-to-buy/pooltogether

Kraken: A reputable and secure cryptocurrency exchange known for its advanced trading features, robust security measures, and extensive selection of trading pairs.

Bithumb: Bithumb is a major South Korean cryptocurrency exchange that supports a variety of cryptocurrencies and provides a user-friendly trading platform.

Huobi: Huobi is another digital currency exchange that allows users to purchase POOL tokens. The pairs available on this platform include POOL/USDT and POOL/BTC.

How to Store POOL？

MetaMask: MetaMask is a popular browser extension wallet that allows users to store, send, and receive Ethereum and ERC-20 tokens. It also enables users to interact with decentralized applications (dApps) and decentralized exchanges (DEXs) directly from their browser.

WalletConnect: WalletConnect is an open-source protocol that enables secure communication between mobile wallets and desktop-based DApps. It allows users to connect their mobile wallets, such as MetaMask or Trust Wallet, to a DApp running in their desktop browser.

Rainbow: Rainbow is a mobile cryptocurrency wallet available on iOS and Android. It supports various protocols, including Ethereum, Bitcoin, and ERC-20 tokens, and offers features like easy onboarding, multi-chain support, and decentralized application integration.

Coinbase Wallet: Coinbase Wallet, formerly known as Toshi, is a mobile wallet developed by Coinbase. It allows users to store, manage, and interact with a wide range of cryptocurrencies and decentralized applications. It also enables users to connect to decentralized exchanges and perform token swaps.

Argent: Argent is a mobile Ethereum wallet with a focus on simplicity and security. It offers features like easy onboarding, one-tap DeFi access, and guardian recovery, which allows users to recover their wallet with the help of trusted friends or family members.

Is POOL Safe？

Open-source smart contracts: The code for PoolTogether's smart contracts is publicly available for anyone to review and audit. This transparency allows for a greater level of scrutiny and helps to identify potential security vulnerabilities before they can be exploited.

Regular audits: PoolTogether undergoes regular audits by independent security firms to ensure that its smart contracts are secure and free from bugs. These audits provide an additional layer of assurance and help to maintain the integrity of the protocol.

Decentralized governance: PoolTogether is governed by its community of token holders, who vote on proposals to improve the protocol. This decentralized approach helps to ensure that the protocol remains aligned with the interests of its users.

Bug bounty program: PoolTogether offers a bug bounty program to incentivize the disclosure of security vulnerabilities. This program helps to identify and address potential problems before they can be exploited by malicious actors.

How to Earn POOL？

Here are a few ways to earn PoolTogether (POOL) tokens:

Participate in no-loss lotteries. This is the main way to earn POOL tokens. By participating in no-loss lotteries, you have a chance to win the entire prize pool, even if you don't win the lottery. In addition, all participants earn a small amount of POOL tokens simply for participating.

Provide liquidity to PoolTogether's DEX. PoolTogether's DEX allows users to trade POOL tokens for other cryptocurrencies. By providing liquidity to the DEX, you can earn fees from trades.

Stake POOL tokens. PoolTogether allows users to stake POOL tokens to earn a yield on their tokens. The yield is paid out in POOL tokens, so you can earn even more POOL tokens by staking your existing tokens.

Earn rewards as a liquidity provider. When you provide liquidity to PoolTogether's DEX, you earn a share of the trading fees generated by the DEX. These fees are paid out in POOL tokens.

Earn rewards as a staker. When you stake POOL tokens, you earn a share of the yield generated by the staking pool. This yield is paid out in POOL tokens.

Earn rewards as a bug bounty hunter. PoolTogether offers a bug bounty program for anyone who can find a bug in its smart contracts. Bug bounties are paid out in POOL tokens.

Whether it is possible to make money with PoolTogether depends on a number of factors, including the price of POOL tokens, the number of people participating in lotteries, and the fees charged by the DEX. However, PoolTogether has a strong track record of paying out rewards to its users, and it is possible to make money by participating in lotteries, providing liquidity, and staking POOL tokens.

FAQs

Q: Where can I purchase POOL tokens？

A: POOL tokens are available on multiple exchanges, like Binance, Huobi, Uniswap, Coinbase Pro, and others.

Q: Which wallets support storage of POOL tokens？

A: Wallets supporting storage of POOL tokens include software wallets (MetaMask, MyEtherWallet), hardware wallets (Ledger), as well as mobile and web wallets (Trust Wallet, MyEtherWallet).

Q: What principle underlies the workings of POOL？

A: POOL operates on a no-loss prize game principle where users' combined deposits generate interest forming the lottery 'prize', while ensuring the safety of their principal investment.

Q: How could the value of POOL tokens fluctuate？

A: The market value of POOL tokens can change due to the volatility of the crypto market and the dynamics of supply and demand.

Q: Are there risks involved in investing in POOL tokens？

A: There are inherent risks associated with investing in POOL tokens, including market volatility, potential technical issues within the Ethereum blockchain, and risks related to third-party protocol integrations.