How To Play The Nezha Draw
Jun 21, 2022
4 min read
How To Play The Nezha Draw
With the launch of the Nezha Draw just weeks away, let us use this article to discover some exciting details regarding the Nezha Draw! We will dive into that by briefly recapping what the Nezha Draw is all about, what we mean by replacing high stakes with staking, the potential prize, and what our plan for the future is.
What is the Nezha Draw?
For that, it makes sense to take a step back and consider what the Nezha draw is all about. The Nezha draw is gamifying yield aggregation by combining prediction events with yield farming. Nezharians can earn game tickets from staking USDC to the protocol which entails 6 numbers each. Yield is aggregated over the game cycle with our yield partners, which spans a week.
On the last day of the cycle, 6 random numbers are generated in an exciting live draw event. All tickets that have the first four, five, or six numbers matching, are entitled to win the tertiary and secondary prizes, and the Jackpot respectively, which are fueled by the yield generated during the game cycle. Due to Nezhas Jackpot insurance, the Jackpot consists of $100,000 USDC with room to grow, bringing the chance to win big to Solana!
And the best: You don’t forfeit your initial liquidity during the game but just the yield on it. So, after each game cycle, you have the option to unstake your initial liquidity + the winnings, or to continue playing for another chance to win big!
How does Nezha replace high stakes by staking?
Replacing high stakes with staking is a concept core to Nezha’s gamified yield aggregator. Instead of forfeiting your liquidity for the chance to win big, we harness the transformative power of DeFi to generate a return through overcollateralized lending on the pooled stablecoin stakes of all participants.
Through the insurance agreement, we can offer very attractive prizes solely through yield aggregation! Therefore, we can offer an attractive opportunity for the big win, while keeping the downside to a minimum, all through staking stablecoin.
Is there really $100k up for grabs every week?
Even though this seems to be too good to be true at first, there is. Each ticket in each game cycle is insured through our partnership with RISQ, which we elaborate on in this article. Therefore, we can sustainably offer a Jackpot of 100,000 weekly. With these outsized wins, it is intriguing to stake some liquidity to the protocol, as there is a recurring chance to win incredibly big!
Aside from the Jackpot, the yield will fuel attractive secondary and tertiary prizes as well. Should there be not enough winners during each game cycle, as much as 50% of the yield is randomly distributed to participating players. This ensures that there are always winners at Nezha. Remaining yield is routed back into the protocol, to let the prizes grow and scale quickly, making the winnings even more attractive!
Does my stake remain in the Nezha protocol each round?
The decision if you want to continue playing, or unstake after each game is completely up to you! If liquidity is locked into the Nezha protocol, you will receive weekly game tickets to participate in the draw as long as you remain staked!
Still, you have the option to unstake your initial liquidity and any additional winnings after each game cycle. Once you are staked, the liquidity is locked by the smart contract for the duration of the game cycle.
Will there be other games?
Yes, there will! Initially, the plan is to grow Nezha with the Nezha Draw, but coming games are planned. After becoming fully operational, we plan to introduce the Nezha Spins as the next game (more information in due time).
In the long term, it is our vision to become an ecosystem of gamified yield aggregation. Therefore, we plan to allow for community-led game development, allowing external developers to build their games with Nezha’s liquidity engine!
Can I immediately withdraw my winnings?
Yes! The winnings are available to claim right after the game cycle. So, after the drawing event, you can unstake your winnings!