Since the prize pot comes entirely from the staking rewards, the players never lose their funds!
CakeTogether is based on the no-loss concept (also called prize-linked saving accounts), the way it works is very simple:
- Players get tickets (tCAKE tokens) by locking CAKE, the tokens are then deposited into PancakeSwap CAKE staking pool to earn staking rewards
- The CAKE rewards generated by staking are all added to the prize pot
- Every 7 days, a ticket (tCAKE) holder is randomly picked and wins the entire prize pot!
- At any time, the players can withdraw ALL of their CAKE tokens by burning their tickets (tCAKE tokens). The only requirement is to hold your tickets for at least the duration of 1 round (7 days).