PowerPool in 2022
Upcoming products, plans, and the DAO
- PowerPool in 2022 is a DAO managing an on-chain automation network (PowerAgent, which already operates >1 year) and building products on top of it.
- Mindmap: Automation network -> Vaults or simple automated strategies -> baskets/indices or complex automated strategies
- We will expand to a broad list of EVM (and some non-EVM) chains by 2022. It includes deployment of PowerAgent and essential products (Vaults, indices, yield aggregator)
- In 2022 anybody will have an opportunity to use PowerAgent to build strategies for personal needs or create their complex Defi products.
Leaving 2021 behind
Defi products delivered in 2021 were much more complex than those developed in 2018–2020. It was so exciting to explore Balancer v2 or Uniswap v3 code and the architecture of these projects. Their appearance is the step in next-generation Defi products.
The level of complexity grew a lot together with opportunities to build new products.
Simulating Balancer v2-based products and Uniswap v3, we found out that from a builders point of view, they require on-chain automation for building Defi 2.0-grade products:
- Balancer v2 requires on-chain automation for facilitating asset managers operation (harvesting yield, reserves maintaining, etc)
- Uniswap v3 requires automation for v3 position management.
At the same time, a key innovation in PowerPool products such as ASSY (Dynamic AMM pool with built-in asset managers) and YLA (automatically updated Fund-Of-Funds stablecoin yield portfolio) is on-chain automation.
So, it looks like on-chain automation is the core business model for PowerPool protocol and products
Automation makes products efficient and saves gas and time for the end-users. It’s convenient, profitable, and necessary for Defi 2.0-grade products:
Table 1. Typical DeFi products benefitting from on-chain automation
This list contains only a few examples of what PowerPool DAO can build on top of the PowerAgent network. Since generalized automation can cover a comprehensive list of cases, we cannot even predict some of them now.
Some stats from 2021
The PowerPool R&D team created several Dune Analytics dashboards for tracking project performance:
- CVP/xCVP: https://dune.xyz/0xPowerPool/PowerPool-Dashboard
- Treasury: https://dune.xyz/0xPowerPool/PowerPool-Treasury
- YLA: https://dune.xyz/0xPowerPool/YLA
- BSCDEFI: https://dune.xyz/0xPowerPool/BSCDEFI
You can check out stats using these links.
PowerPool in 2022
The future of the project was broadly discussed at Community Call held 29 DEC 2021:
We plan to grow the DAO and attract people to the following grant-based positions:
- chain-specific research and content creation
- chain ambassador & communication
The marketing plan is based on delivering products for chains and projects that commited solid support for PowerPool. It includes brand awareness and information spreading, Liquidity Mining rewards, and community engagement. We think that it is better to launch products when the founding team of the L1/L2 chain is directly supporting it.
We will deploy BSCDEFI Vaults (15 JAN approx). The audit is ready. After that, we plan to deploy the PowerAgent network on Aurora, Near, Harmony, and other blockchains. What is the priority, would you ask? — Now, we are making the latest observations for understanding the state of leading Defi projects on these chains. Probably it will be Aurora.
On-chain automation is essential for all chains — on Ethereum, it saves users’ gas costs. At the same time, it allows them to execute even more complex strategies since there is almost no limit on the number of operations (based on gas costs).
CVP token utility currently includes:
- xCVP staking with a share of protocol fees.
- Staking for participating in PowerAgent.
After deployment of PowerAgent on new chains, the “CVP staking for PowerAgent” will become the main utility function. It works in the following way: user stakes CVP, a user launches a special bot and participates in an automation network. Correct behavior is rewarded. Incorrect behavior leads to the partial slashing of the stake.
Rewards will be paid from fees of product operation. After the bootstrapping period, the income of PowerAgent stakers will be based on fees, not CVP inflation.
We expect that in 2022 significant share of supply will be locked in PowerAgent, generating income to stakers.
The latest research activities included the LUSD meta-pool on Balancer v2 (incl. asset managers), YLA optimization strategies, Window rebalancing strategy for Balancer v2 pools, and many more. The repo with some results is here: https://github.com/powerpool-finance/powerpool-research
Audits (they are delivered very slow) are the main bottlenecks for the project development. This is why support from chains not only with LM rewards but also with audits is very important.
We plan to publish results in January 2022.