Introduction To Ruby.Exchange’s NFT Raffles
Ruby integrates NFT-permissioned gemstone rewards right into the AMM’s user experience and core functionality. Gems offer users different perks, helping to make trading and farming more engaging, rewarding, and “sticky”. NFTs will initially provide rebates on trading fees, with additional gemstones that unlock new functionality becoming available after the public sale ends and RUBY tokens are listed on the exchange.
Raffles will be the primary means of distributing gemstone NFTs to Ruby.Exchange users. Here’s how they work.
How To Enter A Ruby NFT Raffle
Users can win gemstone reward NFTs by purchasing tickets for ongoing raffles from the Ruby Dashboard. Each raffle has:
- A total number of tickets for sale, set by the issuer
- A fixed ticket price, in a specified currency
- One NFT prize (optional)
- Up to 10 cash prizes, paid from the total “pot” of ticket sales
To participate in a raffle, users first need to approve the token used to buy tickets with the raffle smart contract, following the MetaMask prompt. (This operation is free, thanks to SKALE’s gasless transactions.) Raffle tickets will typically be sold for RUBY, but any token can be specified by the raffle issuer.
Once the token has been approved, users can buy one or more tickets. The winners are drawn from the total number of tickets, whether or not the raffle sells out, so the number of tickets purchased by a user effectively determines their odds of winning.
Ticket numbers can either be generated at random, or selected manually by the user from the list of remaining numbers.
The raffle lasts until the end of the specified period, regardless of whether all tickets are sold. A running total of prizes is displayed for the current raffle.
At the end of the raffle, tickets are drawn at random, using the MEV-proof random number generator that is built into the SKALE Network’s block validation mechanism.
The winning numbers are displayed, and users can claim any prizes they have won. It is possible for a user to win multiple prizes in the same raffle — or, equally, for a prize to have no winner. First place wins a share of the pot and the NFT, while the remaining places win only percentages of the pot.
There is no deadline for claiming prizes, and the Claim button allows users to collect any unclaimed prizes from all previous raffles.
The raffle issuer can specify that a percentage of ticket fees are burned, so raffles held for RUBY can be net-deflationary. There is also a treasury address, which can be used to collect a fee from the raffle (optional), and that will receive any funds from prizes that are allocated to tickets that no one has bought.
Raffles will often be used to sell a series of reward gems — for example, a run of 10 NFTs that reduce trading fees. When this is the case, the required number of raffles will be held consecutively.
A raffle is initialized with:
- 100 tickets.
- Tickets are priced at 10 RUBY each.
- A gemstone NFT is specified as the prize.
- Five prizes are also allocated for first, second, third, fourth, and fifth places. These receive 30%, 20%, 15%, 10%, and 5% of the pot respectively (total 80%).
- 20% of the pot is to be burned.
- No treasury fee is specified.
- The raffle lasts for 48 hours.
The raffle begins and users purchase 94 tickets for a total “pot” of 940 RUBY. When the raffle ends after 48 hours, the final 6 tickets remain unsold.
Five ticket numbers are drawn at random: 47, 88, 09, 31, and 54.
- Ticket 47 has been purchased and the holder receives the first prize of 30% of the pot, or 282 RUBY, and the NFT prize.
- Ticket 88 has been purchased. The holder receives the second prize of 20% of the pot, or 188 RUBY.
- No one has purchased ticket 09. The third prize of 15% of the pot (141 RUBY) is sent to the treasury address.
- Ticket 31 has been purchased and the holder receives the fourth prize of 10% of the pot, or 94 RUBY.
- Ticket 54 has been purchased and the holder receives the fifth prize of 5% of the pot, or 47 RUBY.
- 20% of the pot, or 188 RUBY, is burned.
Unlocking DeFi’s Potential With NFTs
Ruby’s raffles offer a fair, fun way to distribute gemstone NFTs, enabling users to access perks and wide-ranging permissioned features. Initially this will include trading fee rebates, APY boosts, and early-exit penalty reductions for yield farmers, but there is scope for more extensive functionality. Future NFTs may include referral linking codes, copy-trading and social signifiers, NFT-permissioned analytics and LP management, and even multiple-use NFTs that offer benefits across two or more SKALE Chains and projects.