DeFi Lottery System

How No One Loses Money in a DeFi Lottery System?

Believe it or not but Americans spent over $80 billion on traditional lottery tickets and electronic lottery games in 2016. That’s a huge sum especially when you have some pretty long odds. To state an example, the odds of winning a recent Powerball drawing were 1 in 292.2 million.

Lottery Market has phenomenal scope

Despite all the challenges, Global Lottery Market Insights 2019–2026 by suggests that the revenue generated from the global lottery market will exhibit a CAGR of 10.6% from 2018 to 2026. Statistically, The revenue will go up from $157 billion to $353 billion. This could be even higher if none would lose any money in a lottery system.

How does the no-loss crypto lottery work?

A ‘no-loss lottery over blockchain system consists of -

  • A mobile app or web UI for the lottery participants
  • A web platform for admins to deploy the smart contracts

Step 1: Sign-ups

Participants sign-up by providing details like wallet address, name, phone number, and more.

Step 2: Lottery smart contract deployed

The admin deploys the smart contract that stores predefined rules & policies for the lottery. Subsequently, the admin announces the lottery game for players to register their participation.

Step 3: Stake into pools

Interestingly, when the lottery participants deposit their funds in the pool, the funds automatically get staked in DeFi platforms like Compound, Aave, and more. The interest generated on these staked assets pays the lottery rewards.

Step4: Fair Lottery Draw

Different staking pool designs facilitate weekly, bi-weekly, or monthly draws. A random number generator (such as ChainLink) generates the winning number sequence. As random number generators based on blockchain, adds an extra layer of randomness for lottery fairness.

Advantages of a no loss crypto lottery

Deposited funds are never lost

You don’t pay any cost for buying a ticket. You just stake your crypto assets and that becomes your ticket to the lottery.


The traditional lottery systems remain plagued with challenges like counterfeit tickets, random generation number manipulation, payment of prize money in time, and more. Blockchain promises to overcome these challenges by replacing tickets with a blockchain record that cannot be corrupted.

Market Access

Traditional and online lottery systems have to comply with the laws of their registered jurisdiction. As a result, it limits access to lottery participants across the globe. Blockchain can change this as it can provide access to lottery participants across the globe.

Fair Distribution of Funds

Many lottery setups have gotten into legal battles because of the participants doubting their methods of random number generation and distribution of funds. In a traditional setup, it’s very difficult to keep track of all this information. Blockchain simplifies this as every transaction remains recorded on the chain in an immutable manner.


The lottery industry contributes almost 29% to the total global gambling revenue. And no loss lottery provision can drive the growth of the global lottery market. While no loss lottery or saving prices system is conceptually pretty old, due to technical limitations, the concept has been struggling to get implemented in the real world. But blockchain has made it possible to win big jackpots without actually losing a dime.

DeFi, Crypto banking, White label cryptocurrency exchange development, Crypto wallet development, coin development, fintech, Blockchain