A “no loss” lottery built atop Ethereum — PoolTogether — swiftly caught the attention of cryptocurrency enthusiasts this week as the latest buzz DeFi project on the block.
Despite the excitement, there was a degree of suspicion. Members of the crypto community warned against engaging with the application while its source code stayed proprietary. Such caution was valid and won the quick awareness of the PoolTogether team.
In response, the creators revealed on June 25th MakerDAO Community Call that they would be making the lottery's code publicly available the same day, a promise they fulfilled.
1) The @PoolTogether_ smart contracts are now open source: https://t.co/gfse8B7SiN
The smart contracts are verified on @etherscan :
Upgradeable Proxy: https://t.co/kPQNoo6Pnv
Current PoolManager setup: https://t.co/9RThAUr5d8
— asselstine.eth ???? ???? (@b_asselstine) June 25, 2019
1,900 Tickets Already Purchased
On June 24th, founder Leighton Cusack introduced PoolTogether. The platform lets participants join a pool using lottery mechanics where every participant receives their initial investment back after each round. As Cusack outlined on Medium:
'Here's the process: when you enter a 'pool' on PoolTogether, you stand a chance to win a prize. However, even if you don't win, you receive a refund on your intake! This is facilitated by the interest generated from funds in each pool.'
Supported by a grant from MakerDAO and constructed via an Aragon DAO, PoolTogether leverages the Dai stablecoin for deposits. At present, a single ticket for one of the dapp's pools costs 20 Dai. Collected funds are locked for a 15-day period, after which a winner is chosen randomly to receive the prize — the accrued interest from that pool cycle.
As of this moment, over 1900 tickets have been purchased in the first go-round, with the initial prize expected to exceed 170 Dai. Interest is climbing as the innovation points to futuristic avenues enabled via Ethereum blockchain and Dai. block reward funding I have been eager for this. Imagine if, one day, an organization creates a disaster relief pool, or perhaps a neighborhood hosts a raffle for enhancements?
Individual’s principle remains intact, while someone or even a deserving cause gains a benefit… That's impressive.
Nonetheless, some were not entirely on board with the project, especially when it was initially private. https://t.co/i8tW428tOB
— rich@large (@richatlarge) June 24, 2019
Upon its launch, the PoolTogether crew noted that the application’s source code was not accessible
Skeptics Sound Their Warnings
This situation poses concerns for many as users must trust the application functions as developers claim it does. would be closed-source While PoolTogether achieved a security review
by auditing firm Quantstamp, it wasn't adequate to satisfy all skeptics. contract security certificate Joey Krug, Pantera Capital's co-chief investment officer and Augur’s co-founder, emphasized avoiding closed-source smart contracts entirely.
Legal practitioner and ZeroLaw pioneer Gabriel Shapiro later commented
"" rel="noopener noreferrer" target="_blank">relatedly argued 'Indeed, a significant warning to me is their avoidance of publicizing their source code and their audit signaling trust issues. Such actions introduce needless risks, forming an unnecessary barrier between lenders and Compound smart contracts, in the gamble arena.'
As skepticism spread, PoolTogether had to retaliate. They chose to counter by opting to make the code available.
Beyond the communication in the MakerDAO Community Call, PoolTogether's founder Leighton Cusack separately expressed on Twitter that the ordeal stemmed from a mere rookie oversight — he hadn't initially grasped the importance of open-source in the crypto sphere.
PoolTogether Development Team Moves to Open Source Initiative
'I’ve never ventured into open source or crypto-based projects before,' Cusack shared.
This move undoubtedly fosters reconciliation for the platform, likely soothing most doubters' fears, contingent on the eventual code quality.
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