PowerPool’s PowerPool’s mission is to expand the utility of governance tokens & improve decision making in DeFi https://powerindex.io/
Dynamic AMM (DAMM)
DAMM is an AMM (automated market maker) that changes parameters according to external or internal triggers (e.g. market cap) and certain strategies. Currently, this tech is already utilized by the $ASSY index, and it’s planned to activate it for $YLA. Dynamic AMM is used to optimize capital gains of LPs in PowerPool products. Particular strategies and their implementation are presented in this article. $ASSY is a concentrated bet on four leading DeFi protocols: Aave, SushiSwap, Synthetix and Yearn. It is the first product operating using the recently developed DAMM.
xCVP
$CVP holders will receive cash flows from PowerIndex fees via xCVP Program. PowerIndex pools collect fees and deposit them into the $CVP community treasury, that peaked at $1,150,000 (currently after correction value of assets in the treasury is ~$550,000). The treasury is mainly composed of ERC20 tokens (over 30) collected as fees (enter fee, exit fee, swap fee). According to the xCVP proposal approved by the community, a fees stream will be used for rewarding $CVP stakers by means of xCVP. Users can redeem their xCVP for a higher amount of $CVP as dividends or sell them on a DEX to cashout their dividends. xCVP listing on lending and DeFi protocols allows much better capital efficiency and interoperability (CREAM, AAVE and others). xCVP effectively limiting CVP supply and creating more buying pressure on it, so even CEX holders will benefit from this system.
Wrapper and Router system
This solution allows flexible staking of underlying assets. Via Wrapper and Router system PowerPool pools stake assets in external protocols for generating additional yield. Tokens used in external protocols are stored on the Wrapper contract, while the original pool composition is presented by ppTokens (wrapped tokens). This design allows the Router contract to change asset management strategies without affecting the main pool seamlessly, without any involvement from LPs. This approach in the case of SUSHI staking entirely differs from using xSUSHI directly in the pool — in case of changing strategy, the pool should be re-deployed or somehow substitute xSUSHI by another derivative SUSHI LP token. It is complex and could seriously affect the LP experience. In the case of PowerPool wrapper and router strategy switching wouldn’t affect LPs at all and the pool will work further with a new strategy without re-deployment.
ZAP
In recent months Ethereum fees were quite expensive for ordinary users. For decreasing the cost of PowerPool usage was developed a special solution — ZAP. It works like this: once every 24 hours or when the 500k USDC threshold is reached the PowerOracle v2 Poker Agent, calls the ZAP contract, the ZAP then efficiently deposits users’ funds into the index. Manual supply with USDC into $YLA requires 20 transactions. ZAP automates all of them and requires only two transactions from end-users — approval for spending ERC20 token and an ERC20 transfer into ZAP. On average, this saves users up to 98% of gas fees (gas for the main operation is subsidized by CVP treasury). $YLA offers diversified exposure to Vaults in a single token with cheap supplying/withdrawal of liquidity by means of ZAP solution.
PowerOracle v2
It is a system responsible for maintaining PowerPool products in a decentralized and permissionless manner. The core element of this system is Power Agent — an agent executing all on-chain smart-contract calls necessary for the operation of PowerPool structured investment products. This agent is selected based on $CVP staking and therefore has skin in the game. Contract calls include updating TWAP (Uniswap, SushiSwap) oracle price feeds, execution strategies of dynamic weights changing in AMM pools by calling controlling contracts, strategy contracts and pool contracts. The PowerOracle system is a core of the Unlimited ETF product — a flexible AMM pool that can change weights according to various triggers and strategies. PowerOracle v2 automates the operation of Dynamic AMMs developed by PowerPool and will be used for managing weights in Balancer v2 Dynamic AMM pools launched on top of PowerPool tech.
