What is Pool Party?
Pool Party is a decentralized finance (DeFi) platform that utilizes the Ethereum blockchain to enable users to stake and earn rewards in various liquidity Pools. The platform operates as a game that encourages users to make strategic decisions about which Pool to join, based on factors such as the annual percentage rate (APR), lock-up period, and the risk associated with each Pool.
Pools 1 and 2 operate as a Cournot-style competition where players stake $PARTY in a single-sided Pool. The losing pool pays out 10% of their tokens to the winning Pool every day. On the other hand, Pool 3 offers a variable APY for players to stake $PARTY-ETH LP tokens. Rewards are earned every 24 hours, and this Pool carries no risk of losing tokens to other pools. However, Pool 3 will only be available for 14 days.
Pool Party is designed to incentivize players to stake their tokens and burn them through various mechanisms, ultimately creating a deflationary token with high liquidity.
The game runs on an epoch system where each epoch lasts for one day. During the first 8 hours of each epoch, players must choose which Pool to stake their tokens in. After the 8-hour period ends, staked tokens become locked for 16 hours. After the lockup period ends, staked tokens can be unstaked and transferred. By default, tokens remain staked in the Pools after the epoch ends. Players also have the option to pay a 1% fee on their staked tokens to jump from one Pool to the other. Balances are dynamically adjusted each epoch, so there is no need to claim rewards.