Earn Up to 26% with PoolTogether on Polygon
Disclaimer: This is not financial advice. This is an educational resource that should never be interpreted as a recommendation to buy any digital assets mentioned or an endorsement of PoolTogether or MATIC token. Please do your own research.
Before we get started, reminder that anyone can propose a Zapper Alpha Leak by jumping into the #alpha-leaks channel in Zapper Discord. The only requirement is you must use one of the following:
- Zapper Pools — Shortcuts for adding liquidity to pools and vaults
- Zapper Farms — Staking for farms and liquidity mining
- Zapper Bridge — A multi-chain on-ramp to migrate funds to L2s and sidechains
- Zapper Exchange — A DEX aggregator sourcing the best trading rates in DeFi
Today's guest post was written by the CoFounder of PoolTogether--Leighton Cusack.
The 1st No-Loss Savings Game in DeFi
PoolTogether is a protocol for no-loss prize games. It enables users to deposit money for a chance to win prizes — and keep all their money even if they don’t win. This is made possible because the pool prizes come from interest accrued on the deposits. The protocol is modeled on a well-established concept of “no loss lotteries” and “prize-linked savings” which are already popular around the world.
To summarize, a depositor who participates in PoolTogether will:
- Choose a pool based on the asset to deposit (ie USDT or DAI)
- The deposited assets are lent using a protocol like Aave or Compound
- The collective interest is automatically awarded to a random winner (most prizes are weekly but some are daily)
- After a prize is awarded, any deposits in the pool are re-entered into the next prize drawing
- When one is done playing, they can withdraw 100% of their deposits
PoolTogether is live on Polygon!
In an effort to enable users to participate with cheaper and faster transactions, the very first PoolTogether pool has been launched on the Polygon / Matic blockchain. The pool awards a daily prize by lending the underlying USDT to Aave Polygon's USDT market and later choosing a random winner, where each depositor has a "ticket" in the daily prize based on how many USDT they deposit. To celebrate the launch, an initial $100,000 WMATIC token liquidity mining program has been allocated to subsidize / reward depositors in the USDT pool. This program awards about 3,571.42 WMATIC tokens per day with 125,000 WMATIC tokens distributed in total over 35 days.
You earn a proportionally whatever percentage of the pool you own. If I have $1000 in a pool of $1,000,000 in USDT, I would earn 1% of the allocated WMATIC rewards, while I still have a chance to win the daily pool prize in USDT.
Length of the Rewards Program
This will run for 35 days in total, about 33 days as of this writing.
There are no fees to deposit and withdraw from PoolTogether, except the Ethereum network fees you pay to transact, which are required to Approve depositing USDT and then Confirm depositing USDT.
As a depositor, you are exposed to smart contract risk in PoolTogether and Aave, but you can mitigate that risk by buying cover for PoolTogether, from the likes of Nexus Mutual or pay-as-you-go DeFi insurance by Armor. A liquidity crisis could result from the Aave USDT lending pool being 100% utilized, but it's probabilistically unlikely.
How to Play PoolTogether on Polygon
Currently, you can earn 26% APR on USDT deposited into the PoolTogether USDT pool on Polygon thanks to the WMATIC rewards! Here's how to get started.
- First, one must migrate USDT to the Polygon (Matic) blockchain using Zapper Bridge. You can refer to this tutorial on how to use Zapper Bridge if you're new to Polygon.
- Go to the USDT pool on PoolTogether's app
- Click Deposit
- Specify how much USDT to deposit.
- Click Review Deposit.
- Click Allow USDT and confirm on MetaMask (it should take a few seconds to show Transaction successful!)
- Click Deposit and confirm on MetaMask (it should take a few seconds to show Transaction successful!)
You're done! You'll now accrue WMATIC rewards until this program ends around June 1, 2021, which you can claim whenever you like on your Account page. You can track the balance of your deposited USDT by going to your Zapper Dashboard.