System Diagram
Last updated
Last updated
This is an illustrative chart to explain how the jackpot grows over time. It does not cover fees, staking yield, or Blast incentives.
This chart does not map directly to the smart contract for ease of understanding. For how the smart contract works, see Smart Contract
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 lottery users to always enter to win a large jackpot.
LP Pool Cap: To ensure high APR, deposits are capped when the amount. These will be gradually increased over time as gamblers' ticket purchases increase to ensure . Increases will be announced on social media.
LP Reserves: Money that a LP safely earns yield with with no variance.
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 0.001 ETH (~$3). It is issued from a lottery 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.
Stake percentage: Defines how much money a LP is willing to win or lose based only on luck. A 10% stake percentage means that in the unluckiest case, they lose 10% of their reserves.