PowerPool Newsletter #010
3.2M ASSY Launch | PowerPool v2 | $250k Treasury | YLA index | Smart Ecosystem Fund
In today's issue:
PowerPool v2
Dynamic AMM
ASSY Index
Yearn Lazy Ape (YLA) Index
Smart Ecosystem Fund
PowerPool Newsletter is back, baby! We have tons of exciting news for you, but let's start with a quick check of our treasury. It has around $250k in it, it's not set in stone how these funds should be allocated yet, but there is a big chance that they will go to the active CVP governance participant. On top of that, PowerPool got 10k followers on twitter 🥳
$ASSY Index is Live 🚀
🔗 Quick links:
🏦 Mint $ASSY
🚜 Stake $ASSY to earn $CVP
Currently, $ASSY has $3.2M in TVL and offers competitive APY for its holders. Basic LM program - 73.79% APY, Boosted LM program - 371%
*Read about the $ASSY Liquidity Mining Program below.
The $ASSY index is composed of highly correlated assets - AAVE, SNX, SUSHI & YFI in their staked forms, and going to become Dynamic AMM (DAMM) with dynamic weights changing based on M.Caps of projects.
In the case of ASSY, Dynamic AMM automatically rebalances the pool according to relative market caps of assets. If the price and market cap of a token grows relatively to other composing tokens, it's share in the pool increases. If the price goes down, it's weight decreases.
It s a significant step forward in Indexes design, flipping the "selling winners and buying losers," making the index buy winners while selling losers.
*The DAMM strategy for ASSY will be enabled approximately 7-10 days after the launch
Better Cashflows
After the bootstrap phase, AAVE will be deposited to the AAVE Safety module, and SUSHI will be deposited into Sushi Bar. Later SNX will be used for minting sUSD and supplying it to Curve. Lastly, the best YFI strategy will be defined.
On top of that, ASSY is integrated with 1inch to process more trading volumes and benefit LPs and CVP holders via trading fees.
All this combined will create a significant revenue stream for ASSY holders.
ASSY is more than just an index, it is Invest & Stake one-click solution.
Liquidity Mining Program
Main LM reward: 800k CVP per year
Boosted LM reward: 370k CVP per month
To earn Boosted rewards you need to lock CVP when you stake your ASSY. The reward depends on your share in ASSY and Locked CVP pools.
Minimum boost: 0.025 CVP per ASSY
Maximum boost: 0.5 CVP pr ASSY
The formula to calculate boosted reward is following:
*370k CVP per month = 1.9 CVP/block
Example:
Someone stakes 10,000 ASSY into the block and 250 CVP to activate the boost. In this case:
-> the left part of the formula (TVL reward) will be: 0.5*1.90*[10,000/(1,000,000+10,000)] = 0.0094 CVP/block
-> the right part of the formula (CVP stake reward) will be: 0.5*1.90*[250/(250,000+250)] = 0.00094 CVP/block
-> Total reward: TVL reward + CVP stake reward = 0.0094 + 0.00094 = 0.009494 CVP/block, what is 61.71 CVP/day or 1851 CVP/month.
🚜 Dedicated article: ASSY liquidity mining programs
Launch Roadmap
ASSY will be rolling out step-by-step according to the following roadmap:
ASSY launch ✅
Liquidity Mining Program start ✅
Single-side liquidity provision ✅
Dynamic weights changing based on projects M.Caps - Around 1 week
After activating Dynamic weights changing, AAVE and SUSHI staking will be activated as well. For AAVE staking audit is ready, for SUSHI audit is pending and will arrive in 10–12 days. SNX staking will be added after AAVE and SUSHI.
Q&A
How does the initial "bootstrap phase" ASSY version work?
What will be the initial price for ASSY?
What is the APY and liquidity mining program?
Why CVP boost will be based on locking only CVP tokens (and not CVP-ETH LP/PIPT)? Why wouldn't it be launched immediately after pool launch?
Why no single-side liquidity provision from launch?
You can find answers to all these questions in the official post. 👇
🚀 Read Full Roadmap Post and Q&A
PowerPool v2: unlimited ETF
For PowerPool v2 our thesis is simple: DeFi ETFs shouldn’t be limited by what defines a traditional ETF. Imagination should be the only limitation for ETF design. We will take care of the rest
👉 Read PowerIndex v2: Unlimited ETFs & Automated Portfolio Strategies
PowerPool v2 Unlimited ETF is a financial lego allowing to create of automatically traded portfolios or ETF with an incredible flexibility level.
First of all, it is developed in a permissionless manner to allow anyone to launch and design their index or pool with a defined set of tokens and rules.
Secondly, PowerPool v2 takes the best out of the regular AMM pool, allowing pooled assets utilization to earn fees from staking activities and extract additional value out of Meta-governance. Additionally, integration with smart-routing systems such as 1inch coupled with trading fees collection gives investors one more revenue stream.
And last but not least, Dynamic AMM allows creating unique managing strategies and drastically increases index performance.
Note*: Dynamic AMM (DAMM) is an AMM pool with a defined set of rules to Dynamically and Automatically change weights of tokens.
⚠️Important Article - Dynamic AMM as a Solution for Decentralized Smart Indices
Our vision is that community will create more Unlimited ETFs in coming months, targeting use cases with big TVL and community impact
👉 Read PowerIndex v2: Unlimited ETFs & Automated Portfolio Strategies
Proposal 18: Create Yearn Lazy Ape Index ✅
Yearn Lazy Ape Index or YLA is an index composed of Yearn vault tokens:
curve.fi/Compound
curve.fi/3pool LP
curve.fi/mUSD LP
curve.fi/GUSD LP
curve.fi/y LP
curve.fi/busd LP
It is planned to use adaptive weights proportional to vaults TVL.
The index serves two main purposes:
- smoothen APY generated by vaults;
- create a liquidity sink for yTokens and effectively be the largest exchange pool.
At the same time, users can supply the index using stablecoins, creating a single entry and exit points to yield-generating strategies based on yVaults for the Yearn community and other Defi users.
⚠️ There is no plan to launch a liquidity mining program to support the YLA launch.
🗣 Forum Discussion & Details
Proposal 19: Smart Ecosystem Fund ✅
Smart Ecosystem Fund is an initiative to establish a framework to reward PowerPool community contributors. The Ecosystem Fund size is not limited by any particular CVP number and depends on approved proposals.
Anyone who is doing meaningful work for the CVP community will be able to fund their work if the proposal passes.
But first, we need to reward community contributors that already provided valuable services by direct payment from the team's multi-sig:
1. @Getmegone 37 translations: 1030 CVP
2. @alb2001 36 translations: 909.2 CVP
📰 Team Response
🗣 Forum Discussion & Specifications
More on PowerPool
Power Forum: https://gov.powerpool.finance/
Discord: https://discord.gg/hYJXUBQ
Twitter: https://twitter.com/powerpoolcvp
Medium: https://medium.com/@powerpoolcvp
Website: https://powerpool.finance