💰
Megapot
  • Overview
    • About Megapot
    • How to play
    • How to provide liquidity
    • How to refer users
    • Earn as a liquidity provider
    • About the Team
    • Megapoints
  • Deep dive
    • Components
    • System Diagram
    • Smart Contract
    • Provably Fair
  • Developers
    • Start Here
    • React UI Kit (Beta)
      • MegapotProvider
      • Jackpot
      • useJackpot
    • ERC-20 Jackpot
    • Contract Overview & Functions
    • Standalone Integration
      • Getting Started
      • Contract Functions
      • Jackpot Page
      • LP Deposit Page
      • History Page
    • Brand Kit
  • Appendix
    • VIP Program
    • FAQ
    • About Megapot
  • Terms of Service
  • Privacy Policy
  • Responsible Gaming
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  1. Deep dive

System Diagram

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Last updated 23 days ago

This is an illustrative chart to explain how the jackpot grows over time. It does not cover fees or staking yield.

This chart does not map directly to the smart contract for ease of understanding. For how the smart contract works, see smart-contract deep dive.

📖 Terminology

  • Expected Value (EV): Long-term average value. If you flip a coin enough times, win $1 on heads, and lose $1 on tails, this is neutral EV since you should end up even. Similarly, a 1% chance to win 100x is also neutral EV.

  • Fees: This covers all fees taken from a ticket sale. It is comprised of LP fees, and if referrer address is non-null, a referrer fee. These may be gradually changed to maximize jackpot size, players (via referrer incentives) and LP yield.

  • Liquidity provider (LP): Someone who earns yield by depositing crypto assets for others to use. Here, they allow jackpot users to always enter to win a large jackpot.

  • LP Pool Cap: To ensure high APR, deposits are capped when the amount of tickets in the pool is too low. These will be gradually increased over time as players' ticket purchases increase to ensure high APR. Increases will be announced on social media.

  • LP Principal: USDC that is deposited into the contract but not at risk based on the position in range percentage.

  • Position in range percentage: Defines how much money a LP is willing to win or lose based only on luck. A 10% position in range percentage means that in the unluckiest case, they lose 10% of their principal.

  • LP Tickets: Combined pool of tickets from all LPs. If any ticket here wins the jackpot, prize money is distributed proportionally to all LPs.

  • Ticket: Each raffle ticket costs $1 (1 USDC). It is issued from a jackpot contract, which adds the ticket value to the jackpot. Odds for a ticket to win is 1 / total_tickets, jackpot value is total_tickets * ticket_price.