I have been exploring PoolTogether and love the concept of no-loss prize savings. But I have a few questions about fairness and security:
Randomness & Fairness – How does PoolTogether ensure that prize draws are 100% fair: ?? Is there a third-party verification or an open-source algorithm used for randomness: ??
Smart Contract Security – Since everything runs on smart contracts, what measures are in place to prevent hacks or vulnerabilities: ?? Have there been any third-party audits: ??
Sustainability – How does the protocol ensure long-term sustainability: ?? Are there any mechanisms to keep the prize pools growing over time: ??
Would love to hear insights from the community !! Transparency and security are key for trust in DeFi, so understanding these aspects can help more users feel confident joining.
There are two parts to this: the random number generator (RNG) and the selection of winners.
The RNG service is provided by Witnet; an oracle that runs a RANDAO from which we sample. RANDAOs are known to be pretty good, although there are some edge cases.
The selection of winners is algorithmic and entirely on-chain. The protocol has been audited many times and is fully transparent.
The protocol has been heavily scrutinized with audits from different companies. See the list here.
The contracts are immutable and autonomous, so no person or group has any control over the funds. This means that there is no way for someone to take control, but it also means that if there is a bug then there is likely no recourse to fix it. This is why the contracts are so heavily audited; to ensure there is no show-stopping bug.
A portion of the yield is diverted to give POOL stakers a chance to win. It is the expectation that this will allow POOL token holders to combine resources to improve the protocol.
We’re currently distributing POOL to depositors and looking to establish more comprehensive long-term emissions across all chains very soon. This will distribute ownership to everyone.