Deposits, Withdrawals, & Ticket Assignment
Users can deposit any amount of UST from their Terra Wallet. For every 25 UST deposited, the depositor gets a recurring lottery ticket (i.e. if you deposit 100 UST you'll get 4 tickets). When depositing, the depositor gets to choose the lottery ticket numbers for the lottery tickets they receive.
Note that if you just deposit 24 UST you won't receive any ticket, but if you deposit an additional 1 UST later on, you'll get 1 ticket (in these cases you will not get to choose your lottery ticket number, it will be generated randomly). Similarly, if you deposit 40 UST followed by another deposit of 40 UST, you will receive 1 and then 2 (for a total of 3) tickets respectively for those deposits.
Deposits have an APR (or interest) that accumulates in the account of the user, which is approximately 5%. On top of that, depositors will earn GLOW tokens as part of the Depositor Rewards.
Because depositors earn tickets when depositing, they get free access to Glow Lotto's weekly lottery.
Each ticket is represented by a sequence of 6 numbers, each number between 0 and 15 (both included). "1 2 3 4 5 6", "1 2 3 13 14 15", and "10 11 12 13 14 15" for example are all valid ticket numbers.
Up to 10 different depositors can share the same ticket number. In the case of multiple depositors holding the same winning ticket, all of the corresponding depositors win equally.
Users can withdraw part or the total amount of UST deposited in their account at any time. There are two options when withdrawing funds: instant withdrawal and free withdrawal.
In order for a user to perform an instant withdraw, a fee of 5% will be deducted from amount to be withdrawn. This measure is put into place in order to ensure the fairness of Glow Lotto as it prevents depositors from trying to game the system.
Without this fee, a depositor could game the system by depositing funds right before the lottery is executed, and then withdrawing them right afterwards. In doing so the depositor will have accrued almost no interest towards the lottery (because they deposited right before the lottery was drawn, leaving little time to accrue interest), but would have the same odds of winning as those who had. The 5% fee removes the incentives for this behavior because the expected value of such actions becomes negative.
This fee is shared pro-rata among GLOW stakers.
Free withdrawals lock the funds to be withdrawn for one week, at which point the user can claim the withdrawn amount and make the withdrawal effective. In this case, there's no fee to be deducted from the withdrawn funds.
When a user decides to perform a withdrawal, a number of tickets proportional to the withdrawn amount will be removed from the user account.
Last modified 1yr ago