How Giveaways Work & How You Can Join
In giveaways, prizes are drawn among liquidity providers of a specific pool. Depending on the terms and conditions, prizes, number of participants, and dates may vary from one giveaway to another.
How to Participate
First, you need to find out the terms of a giveaway you want to join. Typically, they all have a detailed description. In most cases, it's enough to be a liquidity provider of a given pool. Some giveaways have additional criteria—e.g., being among the top 100 providers. After adding liquidity, an address automatically becomes a participant and gets a chance to win prizes.
How It Works
Upon supplying liquidity, the provider gets LP tokens of that pool. You can view LP tokens as "lottery tickets." The more LP tokens the provider has, the more "tickets" and hence the more chances to win. Say, there's a total of 100 LP tokens in the pool, and providers A and B have 4 and 2 LP tokens, respectively. In such a scenario, provider A would have two times more tickets than provider B, hence more chances to win by random as well.
By taking snapshots of the pool's LPs, the system records participants and their "tickets," placing each into a separate cell. Using scenario above, provider A would have their address duplicated across 4 cells, while provider B, across 2. In the end, randomizer picks one of the cells. The address it's assigned to wins.
The prizes are distributed automatically.
For better understanding, let's take a look at these:
- HUBABUBA-HUB: daily raffles in Minter, prize = 1% on total liquidity of the pool, participants = top 100 providers of HUBABUBA-HUB pool (more detail)
- BIPX-USDT: one-time raffle in Ethereum set to take place August 15, prize budget = 10 000 000 BIPX, number of winners = 5, participants = all LPs of BIPX-USDT pool (more detail)
If you don't want to miss announcements of new giveaways, follow Minter's Telegram channel.
This material serves educational purposes only. The information contained herewithin does not constitute an investment, financial, legal, or tax advice, and it is not an offer or solicitation to purchase or sell any financial instrument.