PowerPool Newsletter #003
One week in crypto feels like a year in other industries. One week for PowerPool feels like a month in crypto.
The Power Universe
The PowerPool team published a great article about fast-paced community-driven development, highlighting how PowerPool transformed from a GT lending market into the Power Universe in just a few weeks.
Now Power Universe consists of several products, united around the purpose of accumulating voting power by offering valuable Defi services to the end-users and LPs:
Power Index - flagship product (PIPT). A community-managed DeFi index composed of 8 GTs. CVP holders can add, remove GTs, change their shares, fees, and values of other index variables via governance proposals. We expect to see more indexes launched by the community in the future.
Secondary & Lending market for PIPT. USDC-PIPT is the main gateway, allowing users to have immediate exposure to 8 GTs with governance rights. On top of that, the lending market for PIPT will be live soon. Also, we consider an option to use lending protocols, for example AAVE to create additional secondary markets for PIPT.
Power Oracle. Decentralized public price feed for tokens, traded on Uniswap (first of all Governance tokens), streaming simultaneously to Ethereum, xDAI, and Matic networks (Binance Smart Chain and Near Protocol are at the development stage).
PowerPool governance system. CVP token holders entirely govern the Power Universe. Recent Proposal 6 (passed) is an excellent example of how the community completely reimagined the PowerPool CVP token distribution.
Read the full article - HERE.
Augmented Governance
PowerPool's meta-governance system adds new value and level of coordination into the governance process of composite protocols. Hence - Augmented Governance.
A new article from the team goes into a detailed explanation of the Power Pool governance experience and how to leverage it for future development.
Not just Power Index, but the "Smart Index"
The index is a perfect solution for pulling Governance Tokens. Let's talk about why.
Community governed
This allows the index to be flexible and to respond to any market changes rapidly.
Meta-Governance
Pooled Governance Tokens can participate in composite protocol's PIPs (Protocol Improvement Proposals) votings. Combine it with social incentives, it can solve the voter apathy problem and give minority holders a real say. It is a brand new level of governance in Defi.
Automatic Reward Adjustment
Due to CVP being a part of the index, LP reward is automatically adjusted for the index's liquidity, creating a reinforcing loop.
Pooled Token Utilization
The community can decide how to allocate pooled tokens to improve the efficiency of the Power Index and create an additional cashflows for token holders. We consider it as vault-like strategies. For example, the community can choose to stake AAVE tokens in AAVE staking, earn extra APY still owning all voting power of AAVE tokens
Read the full article on Augmented Governance.
Political parties & Protocol politicians
Look, networking, researching, writing - it's all time-consuming, really. To incentivize all these activities and user participation, and finally the live democracic process team introduces several rewards programs. All rewards are subjected to lock-ups, vesting, and future community vote.
Note that composite protocols of the main Power Index are not selected yet and are subjected to the future community vote.
Grants for communities of Power Index composite protocols
1% of total CVP supply (1m CVP)will be allocated to each composite protocol to provide leverage in Powerpool's meta-governance votings. Additionally, it will provide an incentive for each community to participate in Powerpool meta-governance and act as a treasure for rewarding protocol-related community members or organizations.
Protocol Politicians reward program
Protocol Politicians is a "diplomat" or "ambassador" status, applied to an active member of the protocol, which has to be elected by the protocol community. 10% of community grant (or 0.1% of CVP supply, 100k CVP) is allocated to two chosen Protocol Politicians to compensate their work (50k CVP for each of them). It is essential to point out that this kind of Protocol Politicians can be elected only by their communities (only two persons in each protocol).
You can receive another Politician CVP reward for issuing a successful and meaningful proposal on the Power Pool Governance Board. The sufficient size of this reward will be established in voting later.
Layer 2 Voting
Friction to participate in on-chain governance is relatively high, but the development of layer 2 solutions is going very fast, and Power Pool is on the frontier of this development. Read our Beta Round Results and learn how we saved thousands in gas fees during the testing phase.
Our vision is to make the governance system as convenient and frictionless as possible. We already tested it, allowing Beta & Gamma testers to vote on proposal 6 with 0 gas fees.
Baby Power Index
Without a dime spent on marketing, Baby Power Index reached a $550k cap. We have witnessed pretty substantial amounts ($50k-$100k in one transaction) of liquidity moved in and out of the index. So far, everything has been working as planned.
Baby Power Index transition to the v1.1
It is worth noting that the currently outdated LEND token is used instead of AAVE one. It occured due to the fact that LEND<->AAVE transition was started when Baby Power Index was already live. So, in the coming days (we expect to do it on Monday) all LPs will have to transit from one index to another one. All instructions for that will be published on medium soon.
One-click Liquidity Provision and Redemption
You all know that in the early days of the Baby Power Index, to supply tokens into the index, you had to have all 8 Governance Tokens in equal dollar amounts. That is not the most user-friendly way, but rewards for early providers reflected that.
However, starting tonight, you will be able to do it in one click, and you need only ETH. Special smart-contract will buy all 8 GTs in necessary amounts and supply them to the index.
Also, you can redeem your PIPT directly to ETH.
Vesting of LP rewards
Part of proposal 6 was dedicated to LP rewards vesting & lock-ups of the mainnet LM program. For the pre-mainnet testing stage, the team decided to introduce vesting gradually.
Starting on the 24th of October, at block #11120828, all LP rewards are subjected to a 10 weeks vesting period. To implement it, all rewards are going to be moved to new mining pools.
!Important
Migrate LP tokens to not miss on rewards.
After block #11120828, go to https://app.powerpool.finance/#/mainnet/lp-mining
Withdraw your LP tokens from old mining pools.
Stake them in new ones, with enabled vesting feature.
The Power Oracle is in Mainnet
Power Oracle was recently released in Ethereum mainnet and already provides price feeds for 12 assets: 11 governance tokens and DAI.
Check out the Power Oracle here: https://app.powerpool.finance/#/mainnet/oracle/feeds
If you want to participate, use this instruction (it is valid for mainnet too): https://docs.powerpool.finance/testing-power-oracle-on-kovan
Community Spotlight
BeaconChain
A special thanks goes to BeaconChain, for submitting information about CVP to TrustWallet, Metamask, and imToken.
Getmegone4
Thanks to GetMeGone for translating our articles into Russia and publishing them on medium. Links to translated articles:
kluebirby
Thanks to kluebirby for helping people in discord and supplying the community with tons of useful information.
Tweet of the week
Power Forum: https://gov.powerpool.finance/
Discord: https://discord.gg/hYJXUBQ
Twitter: https://twitter.com/powerpoolcvp
https://powerpool.finance
I am looking since 1 month on this project and my experience with it is really awesome. Dr. Governance is an awesome community admin. The techical part of this project is very innovative. Thanks for using layer2 because gasfee is too high on mainnet. Love it!!