PowerPool Newsletter #012
DAMM Launch | CVP Inflation Decrease | Snapshot Voting | DeFiPulse Listing
In today’s issue:
DAMM Launch
CVP Inflation Decrease
Quick Updates
Translations Proposal Snapshot Voting
DAMM Launch
As a part of Unlimited ETF vision, the first-ever DAMM pool was launched.
Dynamic AMM is an AMM that changes weights in the AMM equation in response to a rapidly changing environment.
How DAMM works?
PowerPool Dynamic AMM has three key components:
Balancer AMM pool with an implemented algorithm for smooth weights changing triggered by Controlling contract.
Strategy contract that contains the logic of weights changing, which is used for calculation of new weights
A Poker system for maintaining DAMM. It receives input data (prices, TVL, and any other data available on-chain), calling the Strategy contract for calculating new weights and after that the Controller contract for initiation of the weights changing process
Since ASSY weights were significantly different from weights that should be established by DAMM (based on M.Caps), there were two main options to make the transition happen:
Launch DAMM, transit weights from current ones to M.Caps-based smoothly, and let arbitrageurs do their rebalancing work.
Launch DAMM starting from a state with M.Caps-based weights and proper token balances. For this purpose, balances in the pool should be initially prepared.
The first option implied a potential significant capital drain due to arbitrageurs activity, so the team went with the second option.
Now the 🍑ASSY index is up and running, while LPs saved $500k of capital.
Read full announcement 📑
Governance Discussion: Decrease CVP inflation
Motivation
Prior to proposal 20 the CVP liquidity mining program was focused on bootstrapping the protocol and building a community around it. Now, PowerPool has a pretty solid community and a list of ecosystem partners - leading Defi protocols. Recently TVL (Total Value Locked) reached $30m, and the Community treasury grew to $400k+ levels.
However, the high level of inflation prevents CVP token value appreciation. The liquidity mining program should be further re-defined for sustainable growth of TVL and CVP token value.
In short
The proposal aims to cut the CVP inflation in two rounds:
Read full details & Discuss 💬
Final Translations Proposal
PowerPool translators community is about to relaunch their vital proposal using the snapshot. The community translates PowerPool Medium articles to the following languages: Russian, Spanish, Chinese, Vietnamese, Thai, Portuguese, Korean, Malay, Turkish, and Hindi.
The PowerPool team is finishing up preparations and ready to launch the first PowerPool Snapshot proposal this Friday. This is a critical step, as several proposals are awaiting integration to be ready. We expect our governance to explode in the following weeks.
🚜 Testers' unvested tokens and LP tokens are accounted for the snapshot voting.
You can find additional reasoning and statistics around Crypto Adoption benchmarked against english proficiency in the Getmegone’s comprehensive research.
Proposal Details & Discussion 💬
Read about snapshot voting 📑
Crypto adoption + English proficiency statistics 🔗
Quick Updates:
PowerPool tech lead got his own Twitter now - notsatoshi1A1. Follow him to be aware of great deep-dives about PowerPool tech.
And don’t forget about the beautiful DuneAnalytics dashboard with detailed charts about all PowerPool indexes.
DuneAnalytics dashboard 🔗
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