What Is PoolTogether and How Do You Use It? (2026 Guide)

PoolTogether is a decentralized protocol that turns savings into a prize game. Instead of paying interest to each depositor individually, it pools the yield earned on everyone's deposits and awards it as prizes to randomly selected depositors. Your deposit stays yours and can be withdrawn; the prizes are funded only by the yield.

This idea is often called a prize-linked savings account, a model that exists in traditional finance in some countries. PoolTogether brought it on-chain, where the rules are enforced by smart contracts rather than a bank or lottery operator.

Key points to know up front:

• It is not a lottery ticket purchase. You do not spend money for a chance to win. You deposit funds that you can take back.
• It is not a fixed-income product. Your expected return is a share of the prize pool, which is random for any one person.
• It has been through several versions. Earlier versions used a governance token called POOL and fixed weekly draws on specific networks. Later versions moved to a vault-based design where deposits go into vaults and prizes are drawn on a shorter, regular schedule. Details such as supported networks and tokens change, so always rely on the official app for what is live.

The core appeal is simple: people who would otherwise earn a small amount of yield accept a chance at a large prize in exchange for giving up the steady payout. Whether that trade suits you depends on your attitude to variance, which later sections cover.

The mechanism has four moving parts: deposits, a yield source, a prize pool, and a random draw.

1. You deposit a token (commonly a stablecoin or another supported asset) into a prize vault. In return you receive a vault share token that represents your claim on the deposit.
2. The vault puts the funds to work. The deposited assets are placed in an underlying yield source, usually a lending market or similar protocol, which generates interest.
3. The yield is collected into a prize pool. Instead of being paid to you directly, the yield from many vaults is converted and combined into prizes of different sizes.
4. A draw selects winners. At regular intervals, a random number picks winning depositors across prize tiers. Smaller prizes are more frequent, and larger prizes are rarer.

Because the principal is never spent, a loss of the draw does not cost you your deposit. What you give up is the yield you could have earned by lending the same assets directly.

In the vault-based design, anyone can in principle create a vault for a given asset and yield source, and the vaults feed into one shared prize pool. That means vaults differ in quality. The asset, the yield source, and who deployed the vault all matter when judging risk. The first version of the protocol relied on a few well-known lending markets; the structure has since become more open, which gives more choice and more due diligence for you to do.

Prizes are funded by yield, so the size of the prize pool depends on three things: how much is deposited, what the underlying yield source pays, and how the protocol routes that yield to prizes. None of these is fixed, and rates move with market conditions. For that reason, this guide does not quote a prize size or a rate. Check the prize and vault pages in the app for current figures.

What it costs you

• Opportunity cost. If you deposited the same asset in a plain lending market such as Compound V3, you would receive the interest directly. In PoolTogether you accept randomness in exchange for a chance at a bigger payout. On average, a given depositor should expect less than the full yield, because some of it may go to protocol mechanics, so treat expected value cautiously.
• Network fees. Depositing, withdrawing and approving tokens require gas on the chosen network. On a small deposit, fees can easily outweigh any plausible prize.
• Conversion costs. Yield must be converted into the prize token, which can involve market spreads handled by the protocol.

Because fees are a fixed cost per transaction, the product tends to make more sense for amounts large enough that gas is a small fraction, or on networks with low fees. Do the arithmetic for your own balance before depositing, using the app's displayed odds and the network fee shown in your wallet.

Winners are picked at random, but your odds are not equal for everyone. They depend on how much you hold and for how long.

Time-weighted balance. The protocol tracks a time-weighted average balance for each depositor over a draw period. A larger balance held throughout the period gives better odds than a smaller one, and a deposit that arrives just before a draw counts for only a fraction of its size. This design discourages people from joining at the last minute to claim a prize and leaving straight after.

Prize tiers. Prizes are split into tiers. Small prizes are won often, and the biggest prizes are rare. A single deposit can win in more than one tier in the same period.

How to improve odds sensibly

• Deposit earlier in a draw period, not at the end.
• Keep funds in the vault across multiple draws.
• Understand that doubling your deposit roughly doubles your share of the pool, not your certainty of winning.

Claiming prizes. In the vault-based version, prizes are claimed to your wallet, often by automated bots that are paid a small fee for doing so, so you may not need to act. How this works can change, so read the app's prize section to see whether prizes arrive automatically or must be claimed within a time window. Missing a claim window could forfeit a prize.

No strategy can guarantee a win. The draw is random by design.

Before connecting a wallet, gather the following.

• A self-custody wallet. Any common Ethereum-compatible browser or mobile wallet works. Keep your recovery phrase offline and never type it into a website.
• A supported network. The protocol has been deployed on several networks over time, mostly Ethereum and its layer 2 networks. The official app lists what is currently supported.
• The deposit token. Check which tokens the app accepts on your chosen network. Many people use stablecoins to avoid price swings, but a stablecoin has its own issuer risk.
• A small amount of the network's gas token. On Ethereum networks this is ETH. Without it you cannot approve or send transactions.
• A way to buy and move funds. Most people buy crypto on an exchange and withdraw to their own wallet. Make sure you send to the correct network, because sending to the wrong one can lose funds.

Eligibility and legality

Because the product involves chance-based prizes, some jurisdictions treat it like gambling or a lottery. You must be 18 or older, or the legal age where you live, and you are responsible for checking local laws and tax rules. Do not use tools to hide your location or work around restrictions. If the app shows a region notice or asks for any verification, follow it.

Make sure you have the real site. Fake copies of DeFi apps are common. Type the address from a trusted source or use a bookmark you created earlier, and ignore links in direct messages or ads.

The exact screens change between app versions, but the flow is consistent.

1. Open the official PoolTogether app from a bookmark you trust and check that the address is right.
2. Connect your wallet. Review the connection request. It should ask only to view your address and request transactions.
3. Select your network. Switch the wallet to a network the app supports, and confirm you hold the deposit token and some gas token there.
4. Choose a vault. Read the vault's asset, yield source and any description. Compare the displayed prize odds and the vault's track record. If you are unsure about a vault, skip it.
5. Enter the amount. Start small the first time to test the full cycle, including a withdrawal.
6. Approve the token. The first deposit usually needs an approval transaction that lets the vault contract move your tokens. Approve only the amount you intend to deposit where the wallet allows it, rather than an unlimited amount.
7. Confirm the deposit. Check the fee and sign. Wait for the transaction to confirm, then see your balance and vault share token in the app and in your wallet.

After depositing

Note the draw schedule shown in the app and keep a record of the vault address and network. You can later revoke token approvals using a reputable approval-checking tool in your wallet or block explorer, which reduces exposure if a contract is ever compromised.

Checking for prizes

The app shows your balance, recent draws, and any prizes you have won. Prizes are typically paid in a prize token, which may differ from your deposit token. If the app shows a pending claim, follow the on-screen instructions before any stated deadline. You can also watch your wallet address on a block explorer to confirm incoming transfers.

Withdrawing your deposit

1. Open the app, connect the same wallet, and go to your deposits.
2. Select the vault and choose the amount to withdraw, or the full balance.
3. Confirm the withdrawal transaction and pay the gas fee.
4. Check that the original token has arrived in your wallet.

Withdrawal can only be as liquid as the underlying yield source. If the lending market behind the vault has very high utilization or is paused, withdrawing may be delayed or partial. This is rare, but it is one reason to pick vaults backed by well-established protocols.

If you hold a legacy position

Older versions of PoolTogether used different contracts and interfaces. If you ever deposited in one, check whether a withdrawal interface is still available through the official site, and take your funds out rather than leaving them in unmaintained contracts. Do not trust support messages that arrive unprompted. Genuine teams never need your recovery phrase.

Tax note

Prizes and token swaps may be taxable events depending on your country. Keep transaction records and consult a tax professional.

No-loss does not mean no-risk. These are the main ways you could lose money or value.

• Smart contract risk. PoolTogether's contracts have been audited in past versions, but audits do not guarantee safety. A bug in the protocol, a vault, or the underlying yield source could cause losses.
• Yield source risk. If the lending market or protocol behind a vault suffers an exploit, bad debt or a freeze, the deposit in it is affected. Your exposure is therefore to PoolTogether and to what it builds on.
• Token risk. A stablecoin can lose its peg. A volatile token can fall in value while you hold it. The vault does not protect against either.
• Vault quality risk. In an open vault system, not every vault is equally well built or maintained. Prefer vaults with transparent descriptions and well-known underlying protocols.
• Approval risk. Unlimited token approvals remain active until revoked, so revoke ones you no longer need.
• Phishing and impersonation. Fake apps and fake prize notifications are common in this category. Never sign messages you do not understand.
• Randomness and expectation risk. You may win nothing for a long time. Do not deposit funds you need for essentials.
• Regulatory risk. Rules on prize-linked products vary by country and may change.

Size your deposit so that a total loss would be tolerable, and spread assets across protocols rather than concentrating in one.

PoolTogether sits between plain saving and a game. This comparison helps you place it.

Feature	PoolTogether	Direct lending (e.g. Compound V3)	Liquid staking (e.g. Lido, Rocket Pool)
What you earn	Chance at prizes funded by pooled yield	Steady interest on your deposit	Staking rewards reflected in the token
Income pattern	Irregular, may be zero	Predictable, variable rate	Gradual, variable rate
Principal	Withdrawable, subject to contract risk	Withdrawable, subject to contract and liquidity risk	Token value can differ from ETH; subject to contract risk
Best for	People who like prize-style payouts	People who want steady yield	ETH holders seeking staking rewards
Main extra risk	Randomness, vault quality	Borrower and market risk	Validator and depeg risk

If your goal is the highest expected yield, a straightforward lending market, a stablecoin yield aggregator such as Lulo on Solana, or an automated vault platform such as Superform usually serves you better. If you enjoy the prize element and accept lower expected yield and irregular results, PoolTogether fits. Many people use it for a small slice of their holdings instead of the main savings pot.

Always check current rates on each platform's own pages, since figures change constantly and any number printed here would go stale.

Use this list before and after your first deposit.

Before depositing

• Confirm you are of legal age and that the product is allowed where you live.
• Verify the official app address from a source you trust.
• Read the vault's asset, yield source and any audit information.
• Calculate whether gas fees are small compared with your deposit.
• Decide in advance how much you can afford to lock into an experiment.

During use

• Start with a small test deposit and withdrawal.
• Approve only the amount you need.
• Keep the draw schedule and any claim deadlines in mind.
• Keep records for tax purposes.

Ongoing

• Revisit the vault periodically. Underlying yield sources can change risk profiles.
• Follow the project's official channels for migrations or wind-downs, and move funds if a version is retired.
• Revoke unused approvals.
• Do not respond to unsolicited messages offering help or prizes.

Where to check current facts

Supported networks, tokens, prize sizes, draw timing and odds are all displayed in the official app and documentation. Third-party DeFi dashboards track total deposits and yield sources independently. Because PoolTogether has changed design over the years, use current documentation rather than older tutorials, and treat any guide that quotes specific rates or prizes as potentially out of date.

Play responsibly. If chance-based products start to feel compulsive, step away and seek support from a local help service.