Overview

Brief summary of Archi Prize.

What is Archi Prize?

Archi Prize is a lossless prize game. Since the game is played with only deposit interest, it can be called a 'lossless game with zero principal loss.'

Since Archi Prize runs on the Ethereum blockchain, it requires gas fees. The gas fee is required by the Ethereum blockchain and has nothing to do with the Archi Prize. Lossless does not mean that there is no gas fee.

Prize Pool

The prize game is made from the prize pool. The prize pool is a pool of funds that will be awarded as prize money as interest income.

Funds in the prize pool are collected through deposits from users participating in the prize pool.

The prize pool is classified according to the Ethereum being deposited and is further divided according to the method of how the prize pool is operated such as the winning cycle and the number of winners.

Interest Income Provider

The DeFi service that provides interest income is required to earn interest with assets deposited in the prize pool.

A typical provider is a loan service such as Compound. Archi Bank will become Archi Prize's main provider when Cripto Archi Finance's Archi Bank service is launched.

The first pool in Archi Prize will accept DAI as a deposit and earn interest from Compound. Three winners will be selected every week.

The second pool in Archi Prize will accept Archi Dollar as a deposit and earn interest from Archi Bank. Three winners will be selected every wee

Participating in the Prize Game

Participation is done by depositing assets in the prize pool. You will receive tickets equal to the amount of your deposit.

The term 'ticket' is used to emphasize that the prize winner is decided through a random lottery. The tickets are collateral tokens that guarantee deposits of assets into the prize pool. You can withdraw your deposited assets at any time with a ticket.

It is advantageous for those who have a large number of tickets since the number of tickets determines the probability of winning.

The next prize game automatically begins when game ends. Participants in the prize money game will continue to participate in the game as long as there is a deposit in the prize money pool. Rather than buying a ticket for each prize game, you can continue to participate in the prize game as long as you have a ticket for your deposit.

Winnings are also provided as tickets, not as assets earned through interest.

An increase in tickets indicates an increase in deposit assets. Receiving a ticket is equivalent to directly receiving the prize money since you can withdraw your deposit at any time with a ticket—and if you want to reinvest in purchasing a ticket with the prize money, you can eliminate the hassle of buying a ticket.

Additional Winnings

Prize pools may provide additional winnings in addition to the Interests. Additional prizes are provided primarily as incentives to increase participation in the initial prize pool.

500 CATGs are offered as additional winnings for six weeks every week in the first pool of Archi Prize (DAI, Compound).

500 CATGs are offered as additional winnings for six weeks every week in the second pool of Archi Prize (Archi Dollar, Archi Bank).

Reserves

The prize pool holds a portion of the interest in the pool as reserves. Interest, excluding deposits, is provided as winnings.

The winnings shown on the Archi Prize screen is the amount excluding the reserves.

The reserve money is used as an asset for the interest income. This amount will grow over time, and participants will earn interest as winnings that are greater than the amount used for participating.

Archi Prize's prize pool sets the reserve ratio at 50%. This ratio is the same as the reserve of PoolTogether, a representative lossless game.

Reserves are held as prize pool assets until they grow to a significant size. If the size of assets grows significantly and interest alone is sufficient to motivate participation, the reserves will be used for the gas fee and purchasing CAT for the winnings. A part of the CATs is for additional winnings while a part is burned. Decisions before the activation of Governance are made by the founders and co-founders—decisions after activation are made by Governance.

Fairness

Since the winnings of the prize pool has a cycle, the period of participation may vary for each person. For example, there is a prize pool with winnings every week—A deposited 1 million KRW 7 days ago, and B deposited 1 million KRW 1 day ago. Both A and B withdrew their deposits after the winnings for the week were finalized. A and B have the same probability of winning because they received a ticket for 1 million KRW. It is not fair because B contributed for only one day while A contributed 7 days for the interest.

Archi Prize uses the concept of fairness to ensure that those participating in the prize pool play a fair game.

Everyone participating in the prize pool is expected to contribute to at least the formation of the prize pool. A minimum deposit period is required as winnings are made from interest income, and the interest is awarded based on the length of time the asset is deposited. You must pay an early withdrawal fee if you withdraw your deposit before the minimum deposit period.

Advantage

There is zero risk of principal loss because Archi Prize’s game is done with only the interest income on deposits.

Even though the interest on loan services such as Compound or Archi Bank is not as high (3% per year), you can earn big since everyone's interest is divided by about 3 people in the same way as a lottery.

The main pools of Archi Prize is the DAI and Archi Dollar pool. There is also no risk of price volatility since DAI and Archi Dollar is a stablecoin pegged to $1.

You can easily invest in dollars by accumulating deposits by saving money in the DAI and Archi Dollar pool. Investing in dollars, increasing the number of tickets to increase the odds of winning and winning is like catching two birds with one stone.

No one can manipulate the odds of winning since Archi Prize is implemented as a smart contract on the Ethereum blockchain and the random number generator for the lottery uses a decentralized oracle, Chainlink.

Version 2

Version 2 is the version that allows 10% of the deposit to be used as winnings and points. The ratio of winnings to deposits is 5 : 5. Points will be used for next additional winnings.

Ten percent is not used for every prize game. It is only used when depositing, and if a deposit is already made, you will continue to have a chance to win the next prize game with a probability equal to the number of tickets without any additional cost.

Version 1, which pays winnings with interest, is a prize pool suitable for risk-averse investors—and Version 2 is a prize pool suitable for risk-seeking investors since it has a 10% loss of principal.

Version 3

Version 3 is the same as Version 2 with only the providers being different. The provider for version 3 is Archi Bank

Version 3 will be active after Archi Bank is released.