The idea is to create a ‘‘lottery’’ based liquidity pool where DAO partecipants can deposit in a liquidity pool and win it’s rewards every epochs.
By leveraging ‘‘liquid staking’’ and ‘‘Metaplex Core NFTs’’ , 'the lottery offers a ‘‘positive-sum system’’ where all DAO users can win at no costs.
Any DAO user can ‘‘mint a ticket’’ from the lottery, effectively ‘‘swapping JUP for jupSOL’’ (our ‘‘LST’’) under the hood when minting. This means ‘‘your JUP being liquid staked in our jupSOL stake pool’’. Instead of being sent back to the staker, the jupSOL is ‘‘locked by the onchain program’’ , and the user receives a ‘‘ticket’’ in return.
At any time, a ticket holder can ‘‘burn its ticket to get back its initial JUP stake’’ in a ‘‘trustless way’’ via an onchain program. This mechanism makes ‘‘the lottery deflationary’’ by design, and tickets an asset ‘‘100% risk-free and lossless’’ to mint. The ‘‘jupSOL stake pool’’ would be fully delegated to ‘‘Sanctum’s LST2’’ validator pool, generating an estimated yield ranging from ‘‘5% to 10%+’’ . The ‘‘yield generated every epoch’’ by the lottery’s TVL is ‘‘distributed/split in a trustless way’’ by an onchain program based on the lottery settings:
- to CAWG (if we set a cawg epoch yield, in % of total epoch yield)
- to the lottery#1 prize pool (if we set a prize pool epoch yield, in % of total epoch yield)
As long as they hold a ticket of the lottery, the players are ‘‘automatically entered in every future draw’’ of this lottery. Based on the lottery settings and its creation date, ‘‘draws are automatically triggered’’ (every epoch, or every 2 week, or both, or every month… or any combination possible) and ‘‘performed onchain using a verifiable randomness function’’ (switchboard.xyz integration).
A jup Lottery onchain program then creates PDAs for each winner, containing their claimable prize in SOL.