PowerPool Newsletter #002
In today's issue, we cover the latest news regarding the Power Pool development and community activities.
Baby Power Index Launch
Baby Power Index — capped version of Power Index, which is currently available in PowerPool Dapp (the main Power Index isn't launched yet). The current index liquidity hard cap is $300k and will be expanded soon.
The launch was a blast. The newly created discord channel was booming with questions regarding the brand new PIPT asset and the Baby Power Index. Our server had a massive inflow of new users.
But actions speak louder than words. To limit the risks, PowerPool team defined Baby Index launch in the step-by-step mode with specific cap expansion schedule:
The first hard cap was filled in a matter of minutes. Due to multiple requests from the community, the team decided to extend cap to a second one almost immediately skipping 24h delay. The $50k cap was filled as fast as the previous one. After a delay, seeing a vast community support team increased the cap from 50k straight to 200k, and it was filled in less than 2 hours, confirming a huge demand in the community-governed DeFi index. After a rapid filling of $200k cap, the team recently expanded cap up to $300k.
Current cap: 300,000$
Next cap: stay tuned!
Important note:
Now you need to have all 8 GTs on your wallet to supply liquidity into the index. This limitation will be fixed soon by means of two new options:
(1) an option to use ETH for instant buying 8 GTs from Uniswap and supplying them to the pool
(2) a single-side liquidity provision option — you would be able to use only one of 8 GTs to supply liquidity.
Index Composition
The current index composition was chosen by the Power Pool team and several supporters, such as Delphi Digital, the author of the original Power Index proposal.
YFI — Yearn.Finance. Asset management and yield aggregation protocol.
LEND — Aave. Lending market & leverage
MKR — MakerDAO. Decentralized "central bank", leverage
SNX — Synthetix. The main Defi derivatives protocol
COMP — Compound. Lending market with an active on-chain governance
NXM — Nexus Mutual. The leading insurance protocol
UNI — Uniswap. The leading DEX and Defi liquidity pool
CVP — PowerPool. The first meta-governance Defi protocol
These tokens were picked according to two goals:
Create a highly correlated portfolio to decrease the impermanent loss of LPs
Diversify index across top-tier Defi protocols offering useful tools for ecosystem
The Baby Power Index fees structure
To incentivize long-term holdings and value accrual, we decided to use different from the standard balancer pool fee structure:
Entry fee — 0.1%, paid in PIPT, transferred to PVP
Exit fee — 0.1%, paid in PIPT, transferred to PVP
Swap fee — 0.2%, paid in GT, remains in the pool growing pooled assets (belongs to LPs)
Community fee — 0.1%, paid in GT, transferred to PVP, applied to GT on GT swap in case if it is not related to supplying/removing GT liquidity
The team has prepared a dedicated article regarding the Baby Power Index launch - https://medium.com/powerpool/baby-power-index-is-launched-8b3cdcf2f43f
A comprehensive guide to PIPT
PIPT = Power Index Pool Token. It is the token, representing a share of the Baby Power Index.
When someone supplies liquidity in the pool — the contract mints PIPT in exchange for 8 GTs (Governance tokens). If someone removes liquidity from the pool, the contract burns PIPT and sends 8 GTs to the address, which initiated the operation.
PIPT price is based on the prices of 8 tokens. Each token has ⅛ share in the index. Hence, the price of PIPT couldn't be pumped or manipulated easily.
To calculate fair PIPT price, you need to:
Check out the Power Index contract: https://etherscan.io/address/0xb2B9335791346E94245DCd316A9C9ED486E6dD7f
Check out the PIPT circulating supply: https://etherscan.io/token/0xb2B9335791346E94245DCd316A9C9ED486E6dD7f
Divide (1) Token value locked by (2) PIPT total supply.
1 PIPT = $225,930/199,961 = $1.13
You can read a dedicated article covering community questions here - https://medium.com/powerpool/power-index-explained-pipt-f5c06d43f77e
Liquidity Mining program for PIPT
The team introduced two new liquidity mining options based on PIPT.
The reward for $300,000 liquidity cap is 22,500 CVP per week. It is paid to LPs each block by the special mining contract (check all mining options here).
The first option allows you to stake PIPT to earn your share of the Baby Power Index reward.
The second option is an incentive to attract liquidity to the PIPT secondary market - PIPT-USDC pair. To get a reward, you need to stake a UniV2 LP token issued at PIPT-USDC pair. The reward is 1.5x higher for this option to reflect the increased complexity and risk.
Boardroom Integration
Boardroom is an integrated governance management platform with a simple interface to interact, signal, and vote on governance proposals of DeFi protocols.
PowerPool is only one of two projects allowing vote delegation option and completely integrated with Boardroom (COMP & PowerPool). Why is it important?
Vote delegation function is essential for creation and operation of political parties and activity of protocol politicians. Here PowerPool is leading the way with highly engaged community and community-driven tokenomics (CVP token distribution was re-defined by community in Proposal 6).
Community Spotlight
CVP's popularity is growing across the board. October the 1st, CVP hit the №8 of LunarCrush Altcoin ranking.
This week's meme
Tweet of the week
To be featured in this section, mention @powerpoolcvp & $CVP in your tweet.
Governance Forum Spotlight
YHRW and Sergey were two most active and liked participants of our Governance Forum. We really appreciate your input and engagement.
P.S.
There is a group of active contributors & researchers in the Power Pool Discord working on the future of the protocol. A community grant may be allocated to fund their work. If you want to get in, join our discord and:
Be active
Speak up
Bring value to discussions
Tag @powerpool_official account and ask permission to join the group!
Power Forum: https://gov.powerpool.finance/
Discord: https://discord.gg/hYJXUBQ
Twitter: https://twitter.com/powerpoolcvp
https://powerpool.finance