🧁Introduction

MagiCake is a new category of NFT project: Yielding Treasury Backed NFT.

Invest & optimize your SOL in one click by holding a MagiCake. It will be your forever ticket to our Holder Raffles, giving you a chance to win the pot of the day.

Inspired by No Loss Lottery

No Loss Lottery definition:

No Loss Lotteries allows users to deposit cryptocurrency into a pool to gain a % of chances to win (equal to their pool share %) a big prize (funded by the Yield the staking can generate). There is a regular draw for each prize pool, with prize pools awarded to winners, but your tickets do not expire after the draw. Instead, the lottery rolls over to the next one, the next one after that, and so on until you withdraw funds from the pool.

So you only have to buy a ticket once, and you participate in every draw.

Famous No Loss Lottery sites:

No loss lottery is a good system but presents some issues:

  • An infinite number of participants Typically there is no limit on the number of people that can participate in a lottery. Consequently, this creates no limit on the amount of funds that can be poured into the lottery pool. As a result, a massive influx of lottery position purchases can drive the chances to win for small participants to zero, while the prize to win tends to grow massively in response.

  • Volatile TVL: As participants can withdraw their assets without friction, which keeps them liquid in a way, the TVL of the protocol can sometimes go high and then reduce drastically depending on the trend of the market. Reducing the rewards for the next raffle and so the incentive for participants to deposit more funds.

  • No community engagement: Fungible Tokens lead to a relatively low level of engagement for people participating in the ecosystem. Also as these protocols have often a sparse presence and reach due to the lack of community promotion, the participants enter these forms of lottery DeFi systems at a personal level. Essentially it relies on "wow numbaz are big" growth.

With a Twist

NFTs bring a justified freedom from the limiting parameters of these old models:

  • Limited numbers of participants: Limiting the supply to 333 NFTs ensures a closed circle, only allowing 333 individuals maximum in a perfect distribution thesis. This aids in sustaining the highest statistical odds as possible per individual. Without limiting the maximum of funds permitted to enter into the system over time and via multiple mechanics, helps retain it inside the Treasury. This funds/participants asymmetry reinforces the user's luck over time and maintains it as numbers grow over time.

  • Compensating for the volatility of TVL: Betting on an NFT ecosystem makes sense for MagiCake to counter the volatility of TVL. Indeed natural illiquidity and friction, help the project to retain TVL. Market participants have to buy back each other willing to exit cakes. We acknowledge that this reduces the attractivity of the product in the short term, but is so beneficial in the long run for the whole community gathering and sticking around the product.

  • Community engagement: Having an NFT at the base of a project allows the founders to grow a community through superior branding, a feeling of belonging, and more inclusion. Together they have the combined ability to build a better presence and sentiment for the project moving forward. The participants enter this lottery DeFi system at a group level because NFTs generate a stronger sense of commitment, participation, and sense of ownership versus a fungible token.

Our goal is to deliver to our community a NFT that grants them a forever ticket to a Daily Free Raffle and other Holder Benefits, via optimized Treasury Strategies and simple Processes.

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