PowerPool Newsletter #006

CVP Binance Listing | $5,000 CVP contest results | Delphi Digital Proposal and more

Dr. Governance

Nov 19, 2020

In today issue:

Main news:

PowerPool the “Temperature Check” contest results
Binance CVP listing & research post
Governance Forum: 2 New Proposals
Team Response to the Proposals

Articles & Community

Research: Dynamic Weights Changing Model in live AMM pool
Paul Veradittakit on Meta-Governance & PowerPool
Tweets of the Week

Main News

Here you can find the main news concerning the advancements and milestones of the PowerPool project.

PowerPool Temperature Check Results

We finally know the winners who won $5,000 in CVP plus $500 in extra prizes.

Cryptotroublemaker — first prize 3,500$ in CVP
Cryptosignalz — second prize 1,500$ in CVP
Getmegone — third prize $500 in CVP
Ryanwatkins — special prize $250 in CVP
Sergeygurkin — special prize $250 in CVP

Few interesting quotes:

PowerPool enables small DeFi asset owners to maximize their voting impact on the underlying protocols leading to greater influence and economic benefits.

One of the key features of PP is a unique value proposition for DeFi governance, which creates value-adding use cases for all the parties involved (minority GT holders, different types of large investors, projects, analytics platforms).

Read the full article and more quotes.

Binance Listing

Binance listed CVP on their exchange alongside other top Crypto and Defi projects. It's an important milestone for the PowerPool.

On top of that, a dedicated research page was created, where you can find essential information and some interesting metrics, like GitHub developer activity and token metrics of CVP.

Governance Forum: 2 New Proposals

Our governance forum is heating up again with two new proposals discussion initiated.

Proposal 8: Reduce diluted valuation by burning part of the community treasury

It was launched by a user named CryptoSignalz. The idea is to burn a part of the community treasury tokens to decrease CVP diluted valuation.

So far, it seems like the consensus is to discuss the proposal more to understand the impact on every party involved.

👉 Forum thread.

The PowerPool team response:

Power Pool @powerpoolcvp

2/ Proposal 8 offers to burn part of $CVP supply to make fully diluted cap more attractive: gov.powerpool.finance/t/proposal-8-r… Team response: we think that the best way is to elaborate its premises and repercussions to make it more clear.

gov.powerpool.financeProposal 8: Reduce diluted valuation by burning part of the community treasury“In case we burn some of the community treasury tokens we get lower market valuation to diluted valuation ratio which will be more attractive to new investors. They will more likely to buy, hodl CVP and participate in the PowerUniverse tools so that we maximize the USD valuation of each CVP token. I…

Proposal 9: Update to Vesting, Liquidity Mining & PowerIndex Design

This proposal was launched by the already familiar to PowerPool community Delphi Digital team.

It tackles three important points at the same time:

1. The composition of the index

It will remain relatively unchanged in the transition, consisting of CVP, YFI, SNX, LEND, wNXM, UNI, COMP, and MKR. The only change will be AAVE replacing LEND now that Aave has gone through the token migration.

Since the index remains unchanged, the $3M in CVP rewards will also no longer be rewarded for those who vote on the composition.

2. Liquidity Mining Program for Power Index

The previous plan was to provide 2M CVP in monthly rewards to Index Liquidity providers, with the rewards being locked for one year.

New Proposal: The new proposal is to change this rewards program to 400k CVP per month, with 50% of the reward vesting immediately while the other half vests over the following 10 weeks.

3. Liquidity Mining Rewards for CVP

There are currently multiple pools, ranging from a 50-50 ETH/CVP pool on Uniswap to 95-5 CVP/ETH Balancer pool, that are being rewarded with liquidity incentives. This has fractionalized liquidity a bit, resulting in a dex market that’s less liquid than it should be.

New Proposal: We propose to shift all rewards to the 50/50 Uniswap pool. Specifically, this pool would receive 91,000 CVP on a weekly basis, and those rewards would come with a 10-week vesting period. This will enable those who want to speculate to receive sizable returns without creating a supply glut from rewards

👉 Forum thread.

The PowerPool team response to Proposal 9:

We discussed this proposal with Delphi preliminary and personally support it as it allows to boost TVL, create a secondary market for PIPT, attract liquidity into PowerIndex and CVP/ETH Uniswap pair, and address main issues of previously proposed LM design as well.

The team published a full-sized article responding in detail to each mentioned point separately.

👉 Find the full statement here.

Articles & Community

In this part, we review articles, posts, and tweets done by the PowerPool team or our great community.

Dynamic Weights Changing Model

A model developed in collaboration with Anton Bukov, 1inch.exchange co-founder, solving optimal dynamic weights changing procedure in the AMM pool entirely governed by the community.

See, the PowerIndex is governed by our community. They decide to change weights or substitute one of the tokens altogether. This means that some tokens have to be bought and others sold.

Imagine the size of the PowerIndex is only 10 million. Each token has an equal dollar share of 12.5%. Change of one token on another one would mean $1.25 million worth of tokens will enter the market at once.

To diminish these effects, the PowerPool team developed an elegant solution. Change of weights or tokens will be iterative, changing bit by bit every block.

To understand all in-and-outs of the new approach, we suggest you read the team's full article. 👇

Or a simplified one, written by our community member. 👇

Paul Veradittakit on Meta-Governance & PowerPool

Paul Veradittakit, who is a Partner at Pantera Capital and writer of a VeradiVerdict, a weekly newsletter focused on all things crypto is.

In his recent issue #110, he talks about PowerPool, and it's potential. Here is a quote from his newsletter.

Why is PowerPool compelling?
PowerPool has immense potential to revolutionize meta-governance value creation patterns, shareholder value, and community experiences with different DeFi protocols. Accumulating voting power of several protocols into a single token, PowerPool aims to resolve token holders of Voters' Apathy, increase participation and engagement in governance, and empower minority stakeholders with voting rights and distributed rewards. As an uncapped version of PowerIndex gears up to launch this month, PowerPool has immense potential to disrupt traditional GT value creation and community governance for the better.