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Author: EthHunter
PoolTogether created Pooly to help in its fight for the future of DeFi. Credit: Dippudo
Launched on Ethereum mainnet over three years ago, PoolTogether is a prize-rewarding savings protocol, enabling users to win pooled yield, all while saving tokens in a vault.
The protocol works by users first depositing funds into a pool which is like a giant joint savings account. This lump sum of tokens, in this case USDC, generates yield through strategies utilized by the PoolTogether team on platforms such as Aave.
At a set time every day, the yield is redeemed and PoolTogether does a very cool and unique thing: they raffle off the yield to the pool depositors, allocating “raffle tickets’ based upon a depositor’s average deposit across a 24-hour period. This raffle gives depositors an opportunity to win the yield generated by not only their deposit, but also the deposits in the pool. The prize amounts (and therefore the total amount of money awarded) change dynamically based upon the number of deposits and withdrawals into or out of the pool.
One of the great features of PoolTogether is that you don't lose any of your principal by taking part in the pool. Sure, depositing your tokens into a yield-generating strategy of your own will return you yield, and in the DeFi space, sometimes that yield is quite good. With Pool Together, you can always maintain your principal investment, but you also gain access to the lossless lottery and have the chance to win an amount way greater than the yield your tokens would be generating on their own. Fun!
[Source](https://lh5.googleusercontent.com/9ddRyT6I1FYoiTwotswx0mk0TkyZZH8tZ2wL1OMEnYH51F2hg-h9nowPQBhWqloRLFZvuhMRgdDxkZTHL2x2vb2MtiQAwCLkgekCsXfYo8NOvSOmAqd25x55BjYpnf3v39n5USZXf52vDfwd_t3wPsQ)