Degen Lottery Pool
I come today to bring you a unique lottery concept, and am simply asking for feedback on the system.
It works as such. Entrants allocate money to a pool. The is no limit on the max number of entrants of the maximum amount an entrant can add to the pool.
The lottery executes itself every 12 hours, and a winner is automatically crowned, with payment distributed shortly after a draw.
Each entrants winning odds depends on the amount they have allocated, relative to the amount in the pool.
Example, If there are 100 entrants, and each entrant enters with 1 USD each, then each entrant has a 1% chance to 100x their 1 USD.
Everything happens in real time up to pool expiry, and entrants will be diluted when new entrants join.
All positions are public information.
Let us know what you think of this idea. Below would be mitigations and extra information about DLP.
Now, there is an issue that we foresaw: If a big player comes in, it is easy for them to buy up a large amount to ensure they have a high chance of winning.
The way we have solved this issue is by taxing the winner 5%. This way, if an entrant sees a 1 USD pool, and enters with 99 USD, he will have a net loss of 4 USD despite winning the pool.
Degen LP collects this tax, and distributes 90% of the tax back to NFT holders of Degen LP, while retaining 10% for ops.
Basically what you are proposing is a lottery with 5% Vig. What type of a bond will you be buying to insure all payouts?
We're not based in the US, and are not subject to US law. Also, its a Decentralised product. Meaning that even we dont have the power to rig the system hahaha. Our RNG (Random Number Generator) is verifiably random (Chainlink VRF), and all payouts are distributed shortly after the draw, with potentially 0 input from the dev team. Degen LP works without any of us lifting a finger, and code is law.
Payouts dont have to be insured, because the max payout will always be the total amount of money inside the pool.
For example, if 4 people join and allocate 5 USDC each, the maximum payout will only be 20 USDC. After Tax, the user receives 18 USDC. The 2 USDC "tax" gets sent to a treasury wallet, where 90% of funds collected from all transactions can be redeemed by anyone holding a DLP NFT.
With regard to NFTs, the way i was thinking to structure it was: 10,000 softcap on NFT limit, with 2.5k tranched releases. meaning 2.5k NFTs claim 90% of the transaction fees generated, thereafter when the next 2.5k is released, rewards for the first group will half.
We actually already made the system, available at NFTs aren't up yet though. some people have joined and seem happy and we've managed to get some traction on CT (Crypto Twitter).
Not sure if this answers your question, but im happy to hear your thoughts nonetheless.
Got to love the name... Degen LotteryQuote: DegenLPHi DRich, appreciate your response.
We're not based in the US, and are not subject to US law. Also, its a Decentralised product. Meaning that even we dont have the power to rig the system hahaha. Our RNG (Random Number Generator) is verifiably random (Chainlink VRF), and all payouts are distributed shortly after the draw, with potentially 0 input from the dev team. Degen LP works without any of us lifting a finger, and code is law.
Payouts dont have to be insured, because the max payout will always be the total amount of money inside the pool.
For example, if 4 people join and allocate 5 USDC each, the maximum payout will only be 20 USDC. After Tax, the user receives 18 USDC. The 2 USDC "tax" gets sent to a treasury wallet, where 90% of funds collected from all transactions can be redeemed by anyone holding a DLP NFT.
With regard to NFTs, the way i was thinking to structure it was: 10,000 softcap on NFT limit, with 2.5k tranched releases. meaning 2.5k NFTs claim 90% of the transaction fees generated, thereafter when the next 2.5k is released, rewards for the first group will half.
We actually already made the system, available at NFTs aren't up yet though. some people have joined and seem happy and we've managed to get some traction on CT (Crypto Twitter).
Not sure if this answers your question, but im happy to hear your thoughts nonetheless.
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There is a new lottery every 12 hours.
Each ticket costs the same amount (in your example, US$1, although you can make it a really small amount - say, US$0.000001 - to allow for things like currency conversion; the key is, your chance of winning is directly proportional to how much you have bet).
The winner gets 95% of the money, with 4.5% going to the NFT holders and 0.5% set aside for operating costs.
Do I have that right?
Other than the "once every 12 hours" concept, there doesn't seem that much about this that is "unique."
This is the same lottery concept that has been around for two millennia. Obviously, there are some differences in execution and administration of various lotteries.Quote: ThatDonGuyWhat you are describing sounds like this:
There is a new lottery every 12 hours.
Each ticket costs the same amount (in your example, US$1, although you can make it a really small amount - say, US$0.000001 - to allow for things like currency conversion; the key is, your chance of winning is directly proportional to how much you have bet).
The winner gets 95% of the money, with 4.5% going to the NFT holders and 0.5% set aside for operating costs.
Do I have that right?
Other than the "once every 12 hours" concept, there doesn't seem that much about this that is "unique."
link to original post
Quote: ThatDonGuyWhat you are describing sounds like this:
There is a new lottery every 12 hours.
Each ticket costs the same amount (in your example, US$1, although you can make it a really small amount - say, US$0.000001 - to allow for things like currency conversion; the key is, your chance of winning is directly proportional to how much you have bet).
The winner gets 95% of the money, with 4.5% going to the NFT holders and 0.5% set aside for operating costs.
Do I have that right?
Other than the "once every 12 hours" concept, there doesn't seem that much about this that is "unique."
link to original post
Hi Sir,
Thanks for taking the time to get back.
Yes - Every lottery is 12 hours.
The price of each ticket is 1 dollar, as that has a direct impact on drawing. Here's how it works:
Person A joins and allocates $1, 1 ticket
Person B joins and allocates $2, 2 tickets
Person C joins and allocates $3, 3 tickets
Upon pool expiry, a random number generator generates a number from 1,2,3,4,5,6 where if the RNG produces 1, Person A will win. If the RNG produced 2 or 3, Person B would win. the conversion rate from USDC to tickets will always be 1:1 (for ease of RNG drawing)
You're right that the winner gets 95% of the money, 4.5% to NFT holders, 0.5% operating costs.
Other than the 12 hour concept, allow me to show how Degen LP is different.
DLP allows users to bet in real time. That's where the "Degen" element comes in. Because a user's win % is determined based on his allocation, relative to the pool, there is incentive to leave the Degen LP tab open after joining a lottery, to see if any new entrant comes in to dilute you.
This is different from traditional lotteries, where the purchase of any extra tickets do not dilute the win% of other entrants.
By allowing users to dilute each other in real time, we allow a dynamic lottery environment where users are able to directly influence their win %.
Example: Person A enters the lottery and has a 15% win %. He can choose to allocate more USDC, such that his win% becomes 33%. This dilutes Person's B and C who are already in the pool, who can then respond by increasing their share and trying to secure more win % for themselves.
At the end of the draw, the winner is still decided depending on chance, and there are safeguards to ensure that users do not over allocate, at the expense of other people in the pool.
Please poke as many holes as you can in our system, so we can answer any question that our userbase throws at us. Thank you for your question and hope this answer is sufficient.
Quote: MentalThis is the same lottery concept that has been around for two millennia. Obviously, there are some differences in execution and administration of various lotteries.Quote: ThatDonGuyWhat you are describing sounds like this:
There is a new lottery every 12 hours.
Each ticket costs the same amount (in your example, US$1, although you can make it a really small amount - say, US$0.000001 - to allow for things like currency conversion; the key is, your chance of winning is directly proportional to how much you have bet).
The winner gets 95% of the money, with 4.5% going to the NFT holders and 0.5% set aside for operating costs.
Do I have that right?
Other than the "once every 12 hours" concept, there doesn't seem that much about this that is "unique."
link to original post
link to original post
Hi Mental sir,
yeah we're aware that this someone else has thought of this concept before, as it is a relatively easy concept to think of.
My friends and i aren't pros. Some of us are web 2/3 builders, some of us are hardcore Degens, but we're tight.
One day a friend of mine calls me with this whack idea of allowing someone to influence their win% in a lottery and we ran it afew times with several groups. All of them loved the idea and so we built it.
We did have a proper think of where Degen LP's competitive advantage lies - whilst considering the success of SOL based games like Degen Coin Flip, and the plethora of games which have emerged, wanting to replicate its success.
Web 3.0 is relatively new, and the space is ripe for disruption. We have no idea if Degen LP will be a hit or a bust. But it is fun working alongside friends and chatting with people such as yourselves, making as many friends as possible across the world wide web
Will bettors have money in account with you, or will they have to transfer money to you for each transaction?
Quote: DegenLP
Other than the 12 hour concept, allow me to show how Degen LP is different.
DLP allows users to bet in real time. That's where the "Degen" element comes in. Because a user's win % is determined based on his allocation, relative to the pool, there is incentive to leave the Degen LP tab open after joining a lottery, to see if any new entrant comes in to dilute you.
This is different from traditional lotteries, where the purchase of any extra tickets do not dilute the win% of other entrants.
link to original post
True...and perhaps "lottery" was the wrong word to use.
What you are describing is what is usually called in the USA a "raffle." I am not sure what it is called in other countries; I don't think "tombola" is quite correct.
