Introducing ppTORN: an auto-compounding strategy for tornado.cash $TORN governance staking
Today we are thrilled to announce ppTORN — a vault that allows users to maximize $TORN staking returns thanks to PowerPool’s auto-compounding algorithm.
How does it work?
ppTORN is a smart contract that aggregates user deposits into the tornado.cash governance staking contract. The ppTorn vault harvests and auto-compounds $TORN rewards (protocol fees); ppTORN uses a smart algorithm for harvesting and re-staking which allows it to compound the rewards for Tornado token holders while reducing overall gas costs.
We calculated that during 2 months user generated 61% APY in ppTORN vs 52% for direct staking without Vault.
In order to replicate ppTORN user should spend 0.57ETH during 2 months.
It is important to point out, that the user pays ONLY for ERC20 transfer and doesn’t pay for staking operation into Tornado.cash contract, harvest, and re-stake operation.
In order to build this product, The PowerPool research and development team ran experiments that processed on-chain data of the Tornado.cash governance staking contract which revealed that there are optimal time conditions for compounding TORN income:
We used on-chain data for the first two months of operation and then we used the TORN 2.0 tokenomics model to estimate a staker’s income in different scenarios of harvesting and re-staking.
The results revealed that ppTORN allows users to generate more income while reducing ETH gas costs and yield management time. The ideal timeframe for harvesting and re-staking according to our experiment is around 40 hrs.
Now, the ppTORN vault is ready to accept user deposits! PowerPool has automated all of the processes described in this article using the PowerAgent automation network that is a part of the PowerPool protocol. As long as users stake $TORN through the PowerPool $TORN vault, they will automatically maximize the yield generated by $TORN protocol fees.
There is no lock-up period for the $TORN rewards in the PowerPool Vault, so $TORN holders can withdraw their initial deposit and rewards whenever they want. If $TORN stakers use the PowerPool $TORN vault within its first month of launching, they will not incur any service fees for their deposits and withdraws to the vault; after this free month of service ends, the PowerPool DAO will analyze the available data to decide on a fee structure.
How to use PowerPools $TORN vault
To use the ppTORN vault, users should access app.powerpool.finance website, click the “Vaults” section, and then deposit $TORN into the ppTORN vault–remember to approve $TORN in your wallet before using the vault!
$TORN is the ERC-20 governance token used in the Tornado Cash ecosystem. Recently, the $TORN tokenomics were updated, and now, TORN Relayers pay protocol $TORN fees to the governance staking contract. Thus, $TORN has three primary use-cases, (1) governance — it can be used to create proposals and to participate in voting, (2) it captures Tornado.Cash protocol fees (3) it incentivizes user participation since it distributes protocol fees to $TORN stakers.
PowerPool DAO manages a growing range of structured DeFi products including single token ‘smart’ vaults, optimized stablecoin yield pools, and actively-managed thematic diversified multi-token ‘baskets’ (indexes), all powered by the affiliated PowerAgent/PowerOracle automation network.
PowerPool DAO’s mission is to create and actively manage a broadly diversified portfolio of automated, gas/capital-efficient, structured DeFi product portfolios deployed across EVM-compatible networks, with 100% of management fees accruing to the xCVP stakers controlling the DAO.