Lucky8 is the first no-loss lottery featuring incentive mechanisms inspired by Empty Set Dollar to create economic flywheels. Lucky8 leverages a variety of different design choices to align protocol participation with game theoretics.

TLDR:

• Buy $888

• Bond $888

• Win the the lottery

The v1 of $888 is live already - everyone that holds, or buys $888 will be able to migrate it 1:1 upon re-launch.

The $888 token

$888 is Lucky8’s native token that incorporates a native 10% buy- and sell tax. The taxes originating from token buys- and sells essentially fuel the lottery prize pot, create bonding incentives, enable for Protocol-Owned-Liquidity (“POL") and more. The tax swap mechanism is natively implemented in the token contract enabling tax swaps to happen in the same buy- or sell transaction. The taxes are split as follows:

• 40.0% Lottery Prize Pot (100% swapped for USDC)

• 40.0% Protocol-Owned-Liquidity (50% swapped for USDC)

• 20.0% Distributed to bonders ($888 denominated)

The main utility for the token is to participate in lotteries and to receive $888 rewards. In order to participate in a lottery draw, $888 tokens must be bonded by the user in order to mint the same lottery ticket amount as $888 tokens bonded (1 $888 token bonded = 1 lottery ticket).

$111,000 USDC are sitting in the prize pot waiting to be distributed upon re-launch!

Furthermore, with the inception of the next epoch, all bonded $888 will auto-compound by receiving their pro-rata share of additional $888 coming from the 20% tax earnings that goes to bonders. Hence, bonding rewards incentivize people to remain bonded as long as possible to increase their share in the lottery, and increase their odds of winning. All token rewards are non-inflationary as they are funded by the taxes.

If people decide to exit the system and unbond their $888 tokens, they become staged for 3 epochs. While being staged neither lottery participation, nor bonding rewards are enabled.

1,036,000 $888 (1.2% of the total supply) are currently sitting in reward pool that will be distributed upon re-launch!

The lottery

The lotteries are defined by so called epochs. Every epoch lasts 24 hours and features one lottery draw at the end of the epoch. During each lottery draw, 3 winners are randomly selected via Chainlink VRF that equally share the prize pot.

The lottery prize pot

The lottery prize pot is funded by the 40% of the buy- and sell taxes and denominated in USDC. The prize pot per lottery draw consists of 10% of the entire prize pot accumulated meaning that the entire prize pot is distributed over 10 days rolling.

Example: If the entirety of USDC collected is $250,000 at the end of epoch 1, the prize pot to be distributed for that particular lottery draw will be 10% of that, so $25,000. After the lottery draw of epoch 1 has happened, the entirety of USDC collected sits now at $225,000. Let’s assume that during epoch 2, $1,000,000 of trading volume was generated, which translates into $40,000 worth of prize money that has been created. Resulting from this, the entirety of USDC collected at the end of epoch 2 is at $265,000. Hence, the lottery prize pot for the lottery draw at the end of epoch 2 will distribute 10% of that, so $26,500. And so on…

NEXT STEPS

As we are approaching the re-launch of the protocol, the next steps look as the following:

• Deploy all the new smart contracts including:

  • Lucky8 DAO contract (holds all governance-, bonding-, reward- and lottery logic)

  • New Lucky8 ERC-20 token contract including migration function

  • Lottery Ticket contract

• Launch the new frontend including the token migration

• Liquidity migration which will include the temporary removal (a few minutes) of the current liquidity and the re-seeding of the pool paired with the new $888 token contract.

• Kickoff the lottery cycle!

The exact timelines will be communicated very soon. We are getting closer to re-launch, so buckle up: ETA in ████

Discord: https://discord.gg/Lucky8