TLDR:
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Buy $888 Tokens
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Stake $888, or provide liquidity to the 888/USDC Uniswap LP Pool and stake the LP tokens
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Create a referral link, invite people and earn multipliers
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Mint lottery tickets
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Be happy (either you won the lottery, or benefit from the buyback & burn)
Lucky8 is the first fully on-chain lottery leveraging interesting incentive schemes to enable round economic flywheels. In fact, Lucky8 is not just a lottery, Lucky8 is an entire economic experiment that combines proven incentives mechanisms from DeFi projects like ESD, DSD and OlympusDAO to achieve vast economic growth.
By combining those different mechanics we aim to be the fastest growing, most transparent and most economically appealing lottery for all participants (not just for the lottery winner).
What is $888?
The core component of Lucky8 is $888, the protocol’s native token that enables you to participate in the lottery. $888 is an ERC-20 token that comes with a 10% buy- and sell tax that can be bought on Uniswap. The vast majority of the tax earnings are going to the lottery prize pot; the detailed tax revenue split looks like this: 80% lottery prize pool / 10% POL (“Protocol Owned Liquidity”) / 10% team.
How to participate?
To participate in the lottery, you must own lottery tickets. To get lottery tickets, you simply have to buy $888, and stake those. Every staked $888 token is equivalent to one lottery ticket. Alternatively, you can also provide liquidity to the 888/USDC Uniswap pool, and stake the LP tokens. Every $888 within your entire LP position gets you 1.5 lottery tickets. Hence, liquidity providers automatically receive a 50% multiplier in lottery tickets over idly staked $888 tokens.
Let’s look at a practical example, assuming the price of $888 is $1 per token:
Scenario A - $888 staking: Someone stakes 1,000 $888 tokens.
As we learned above, for simple $888 staking, 1 $888 staked equals to 1 lottery ticket. Hence, in scenario A, the person will be able to get 1,000 lottery tickets.
Scenario B - 888/USDC LP token staking: Someone stakes $1000 worth of LP tokens:
Now, remember how Uniswap v2 works. Every Uniswap v2 pool consists of two equally (50/50) weighted tokens. Hence, with $1000 tokens worth of LP tokens, that person provided 500 USDC and 500 $888 tokens (assuming an $888 price of $1). As Lucky8 denominates the entire LP position in $888, the $1,000 worth of LP tokens, is essentially worth 1,500 $888.
The 50% multiplier is based on the entire LP position value denominated in $888, hence the person staking $1000 worth of LP tokens, will be able to get 1500 lottery tickets. To make it a bit easier, simply multiply the actual amount of $888 within your LP position, and multiply it by a factor of 3 to calculate how many lottery tickets you are able to get.
Explaining the referral system
After you've staked either $888 tokens, 888/USDC LP tokens, or both, you can increase your lottery ticket count through referrals. Referring others to Lucky8 can significantly boost your lottery tickets, up to a factor of 10x. Additionally, anyone who joins Lucky8 via a referral link automatically receives a 10% multiplier in their lottery tickets. For example, let's say someone staked 1,000 $888 tokens and used a referral link to join. They would receive 1,100 lottery tickets (1,000 + 10%).
You have the option to create your custom referral link, which enables you to receive the ticket multiplier. The calculation for this multiplier is quite straightforward: it depends on the ratio between your amount of $888 and/or LP tokens staked relative to the total amount of $888 and/or LP tokens staked by your referrals.
In essence, the more your referrals stake in $888 and LP tokens relative to your own stake, the larger your lottery ticket multiplier can be, potentially reaching a maximum up to 10x. Let’s also put this into some practical examples assuming someone staked 1000 $888 tokens and heavily referred to multiple people.
Scenario A - All the people referred stake 500 $888 in total:
In that case divide the total amount of staked $888 by your referrals by your amount of $888 staked. 500 / 1000 = 0.5 = 50% In that case, the referrer will receive a 50% multiplier on the lottery tickets, resulting in 500 extra lottery tickets totalling 1,500 lottery tickets for the referer.
Scenario B - All the people referred stake 6,000 $888 in total:
Same story. Just divide the total amount of staked $888 by your referrals by your amount of $888 staked. 6,000 / 1000 = 6.0 = 600% In that case, the referrer will receive a 600% multiplier on the lottery tickets, resulting in 6,000 extra lottery tickets totalling 7,000 lottery tickets for the referer.
Scenario C - All the people referred stake 500 $888 and $1,000 worth of LP tokens (assuming $1 per $888) in total:
Here, we use the same math for calculating the LP token value as described above and add it to the 500 $888 staked. (500 $888 + 500 $888 * 3 ($1000 worth of LP tokens)) / 1,000 = 2,000 / 1,000 = 2 = 200% In that case, the referer managed to refer people to Lucky8 that in total staked 2,000 $888 across idle $888 staking and LP staking. Hence, the referer will receive a 200% multiplier on the lottery tickets, resulting in 2,000 extra lottery tickets totalling 3,000 lottery tickets for the referer.
The lottery structure
One important utility of $888 is the ability to vote on two specific things. Those two decisions will immediately be voted on after the past lottery.
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When will the next lottery take place? E.g. in 3 days, in 1 week, in 2 weeks or in 1 month.
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How will the prize pot be distributed? E.g. winner gets it all, equal split between 3/5/10/100 tickets.
In preparation for the lottery draw, a snapshot will be taken 24 hours in advance, considering all the assets staked in the amount of $888, as well as the staked 888/USDC LP tokens. This snapshot will determine who is eligible to mint lottery tickets for the upcoming draw.
It's important to note that the snapshot is not tied to a specific block but rather to a specific hour. However, there is a window of approximately +- 10 minutes around that specified hour during which the snapshot will actually be taken. This timing flexibility is intended to reduce the risk of individuals manipulating the value of LP tokens.
To ensure your participation in the lottery, it's recommended that you stake your assets at least 10 minutes before the scheduled hour for the snapshot. This way, you'll be included in the snapshot and eligible to mint lottery tickets for the upcoming draw.
Once the snapshot is taken, it will be made public on the blockchain. Following this, there will be a 24-hour period during which participants can mint their lottery tickets. It's essential to note that to take part in the lottery, everyone must mint their lottery tickets within this 24-hour window.
If you've staked your tokens but forget to mint the lottery tickets during this period, you won't be able to join the upcoming lottery draw. It's important to remember that each new lottery draw will have its own set of lottery tickets. This means that while you can continue to keep your tokens staked, you should ensure that you don't forget to mint tickets for each individual lottery draw.
After the 24-hour period for minting lottery tickets ends, the winning ticket or tickets will be chosen using Chainlink VRF and their results will be revealed. Following this, there will be a 24-hour window during which the lottery winners can claim their share of the prize pot.
Important to note is that staked $888 and staked LP tokens will be locked from the time of the snapshot until the prize pot is claimed, or the prize pot claiming window is over (48 hours max).
Let's break down the two possible ways the prize pot can be distributed:
Scenario A - the winner claims the prize pot:
70% of the prize pot goes to the winner/s
20% Buyback and burn
10% Roll-over to the next lottery draw
Scenario B - the winner misses to claim the prize pot:
40% Roll-over to the next lottery draw
40% Buyback and burn
20% Team
This article describes the most important aspects of Lucky8 to better understand how the lottery works. If you have any further questions, please ask questions in our Discord. The Gitbook will be published soon.
We are getting closer to launch: ETA in ████