How the Prize Pool is Calculated
Last updated
Last updated
The prize pool in FrogsFi is calculated based on the total amount of stablecoins deposited by participants during the draw period. The more participants there are, the larger the prize pool will be. Also of great importance is the APR in the farming pool, which can change. The FrogsFi protocol uses the BUSD-USDT pool with the highest yield (APR 9.25%). The information is relevant for 05/02/2023
For example, if 100 participants each deposit $50 worth of stablecoins, the total prize pool will be $5,000. This amount will be sent to the Pancakeswap farming pool to generate profits, which will then be played out among the participants.
At the end of the draw period, the profits generated from the farming pool in $CAKE will be distributed among the participants. The winner of the draw will receive their deposit back plus a percentage of the profits generated, while the other participants will have the option to withdraw their deposit or participate in the next draw.
It's important to note that the prize pool is not fixed and can vary based on the number of participants, % APR in the farming pool and the amount of stablecoins deposited. Therefore, the more participants there are, the higher the potential prize pool and winnings.
