In my opinion, the two current problems are the following:
– Too much sacrifice of yield (too painful)
– Lottery prizes are too low
– Current system limits the number of tokens useable
Both of these problems can be solved with the implementation of a common lottery that would replace the current separate lotteries.
In this common lottery, participants would exchange their yields for BUSDs and these BUSDs would then be exchanged for Moontickets to determine the chances of winning (based on the current system).
The benefits of a common lottery are the followings:
> Less sacrifice of yield, more players expected to join Moonpot
> Bigger prize in terms of value
> Possibility to launch more pots based on Beefy vaults because contributions are mutualized
> Easier to market it and sponsor it (bigger prize is more appealing)
At present, the proportion of the yield that a player must subscribe to finance the lottery is too high.
50% of the yield is used to finance the lottery.
This proportion is too high and discourages many players from participating because they do not want to forego such
a large proportion of their interest. When you add the small prize (see problem 2 just below), it is even worse.
Renoucing 50% of your yield for a potential small prize like the BANANA, Bifi or BNB pot is just too painful right now.
The second problem with the current system is that it produces lotteries with prizes that are too low.
Moonpot was launched with a lottery that has several hundred thousand dollars. This large amount has generated
hype and interest among investors.
Currently, lotteries struggle to attract new players because the amounts are too low. CAKE pot is doing alright but other
lotteries are not very appealing. Their prizes are too low unfortunately.
It is hard to generate hype or to build interest with small prizes. We need a life changing prize. A common lotery can
provide this.
The current design doesn’t allow to really have many tokens useable on Moonpot, especially when you compare with
Beefy.
The reason is that to have a pot on Moonpot with the current system, you need to have a) nice TVL on Beefy b) nice
APY.
Otherwise you cannot finance a meaningful lottery prize.
With a common lotery prize, it doesn’t matter. Even a token with a small TVL or a small APY could on Beefy can have a
pot on Moonpot as it can contribute to the common lottery anyway. It means more players, more exposure, more revenues.
- The common lottery would be bi-weekly.**
- Each player stakes the token he wants in his respective pot.
- For example, a player stakes CAKE in the CAKE pot.
- The common lottery would not make players give up 50% of their yield, but only 20%.
The yield would be converted to BUSD in order to know the player’s contribution in BUSD. This contribution would then give him a certain amount of Moonticket.
Converting the contribution to BUSD allows ALL players to participate, regardless of the token.
A player who stakes in the CAKE pot and contributes 10 BUSD to the common pot, receives 10 BUSD of Moontickets.
A player who stakes in the BANANA pot and contributes 5 dollars, receives 5 dollars in Moontickets.
CAKE’s yield contribution –> BUSD –> Moontickets
BANANA’s yield contribution –> BUSD –> Moontickets
etc.
We would still have multiples pots but one common lottery.
In summary, the fact that the yield is converted into BUSD allows all players to play the same lottery while respecting the « fairness » of the system (moontickets according to the contribution).
** It would a bi-weeky draw for each chain. So we could have one big draw per week with BSC chain and FTM chain as
BSC would be week 1 and FTM week 2. Multichain is perfect for that because at some point in the future, we may have
several big common lotteries each week.
A) Establishing a common bi-weekly lottery would lower the contribution in terms of
percentage while having an attractive lottery prize.
Instead of contributing 50%, players could contribute only 20%.
This would be less painful to stake. As it would be a common lottery and a bi-weekly one, only giving 20% would still
give a nice prize.
B) The second big advantage is that a common pot gives the possibility to launch more
pots (and expand on every chain, even the smaller ones on Beefy in terms of TVL)
In the current system, Moonpot cannot use all the vaults on Beefy because some Beefy vaults have either a too low TVL
or a too low yield.
In the current system, it is hard to launch a pot with a Beefy vault that has a too low APY because it is impossible to get
a meaningful prize.
In a common lottery’s model, an ETH or BTC pot could work because the contribution is in dollars and the lottery is
common, so the prize would be significant anyway.
A common lottery would allow to constantly add new pots according to what is done on Beefy.
This would boost Moonpot’s TVL, increase the number of players, and above all increase the value of the lottery prize
(common pot) –> ideal for the marketability of Moonpot.
The bi-weekly frequency would not be a problem since the portion of the yield sacrificed would be smaller.
Also, very important to note, that we are not talking about new vaults only but also new chains can be considered.
A common lottery would make expansion on smaller chains like Cronos, Fuse, Moonbeam more likely as you just need
a dozens of Beefy vaults to end up with a nice lottery prize.
In the end, players would keep a strong portion of their yield
(80%) – as only 20% would be used to finance the lottery prize –
while participating in a fun lottery with a large prize. This is a real
Win-Win scenario.
The common lottery would become a real bi-weekly Defi event.
What’s more, this common lottery will be perfect for sponsorship: third-party projects can boost the prize pool in exchange for visibility.