Platform Economics

The platform derives value for itself primarily through staking assets held in lotteries and NFTs for yield. This yield can then be funneled into a treasury smart contract within the platform. In addition, a portion of the Residual can be captured by the platform as a fee for service and used to augment yield-bearing efforts.

Yield Farming

Stakes and collateral held within the platform can be used to generate yield (interest) through such platforms as 88mph and Aave, similar to a Lossless lottery such as PoolTogether. An algorithm which takes into account inflows and outflows, along with the current level of the treasury, can maximize the amount used to generate yields and rebalance every 24 hours (lock out time post-lottery’s end).

Residual and the Treasury

Since all monies coming into the platform are in stablecoins, the treasury is in one or more stablecoins. Here is the initial model we propose for distribution of the Residual:

• 25% to the Platform treasury

• 25% to the Sponsor of the lottery

• 25% to the lottery winners, divided uniformly

• 25% lump sum to any participant (winner or loser), also determined by the VRF and unrelated to ticket weight

Alternatively, the Residual spend can be determined entirely by the Sponsor. In this case, the platform should require a percentage of the Sponsor’s distribution go back to the platform and into its treasury.