PowerPool Q&A: PIPT YETI ASSY
This article is devoted to answering community questions and the PIPT YETI ASSY development roadmap
PowerPool smart Defi indexes — PIPT and YETI recently peaked at $19m TVL. Power Forum and discord discussions are boiling up, mostly focused on Marc Zeller’s ASSY proposal. Other proposals include community grants, CVP LM program update, and new indexes:
- CVP/ETH Uniswap rewards program
- Community grants allocation
- DORA: oracles tokens index
- NFT Governance tokens index
This article is aimed to provide answers to the community on frequently asked questions devoted to the development of PIPT, YETI, and ASSY indexes.
We developed a lot of brand new stuff, including charts for PIPT/YETI, trading section, meta-governance, and vault strategies implementation.
Index liquidity charts:
Fee returns & index cashflow performance:
Index trading volumes:
PowerPool Roadmap and 2021 vision article will be published tomorrow. Stay tuned!
When adaptive vesting will be implemented? I am tired to wait for that.
After the PIPT launch, we developed a lot of stuff, including adaptive vesting. Now it is ready for implementation. But, according to the current market situation and big volatility on the Defi tokens market we decided to ask the community — do you really want that? The current incentive scheme (10 weeks vesting) works pretty well for PIPT, and token dump can result in APY drop which in its turn will evidently lead to TVL reduction. We wait for your opinion on this.
Why is the meta-governance for PIPT and YETI components isn’t implemented yet? Is it ready to use or it is under development?
Meta-governance is already implemented for two PIPT components — COMP and UNI. You can check out the Compound governance leaderboard PIPT address is at the 32 position in the list (at the moment of publishing this article). As you can see, these votes were already used once during testing. The team voted using team multi-sig, controlling PIPT (this vote didn’t influence the outcome and was carried out for testing purposes). Uniswap votes are created as well.
For other index components implementation of meta-governance needs more complex integration. Now we are ready with YFI and AAVE integration (YFI will be deposited into YFI staking, and AAVE into AAVE safety module for this purpose). The high-level overview of this implementation was published in YFI Partnership and PowerPool x AAVE community collaboration articles.
So, after the implementation of YFI and AAVE staking, we will transfer control of the controller contract to PowerPool governance. Now it is controlled by multi-sig (signers: 4 PowerPool team members, Banteg from Yearn core team, Calvin Lau from Compound, Delphi Digital, and CMS Holdings). Every transaction requires 5 signatures.
Nexus Mutual and SUSHI meta-governance are next on the roadmap.
Why doesn’t ASSY include CVP in its composition? Would it affect CVP value negatively?
ASSY is composed of AAVE, SNX, SUSHI, and YFI according to the initial proposal. After community discussion, Mark Zeller concluded that CVP isn’t necessary for ASSY and it will gain more TVL and recognition being a productive “concentrated bet” index. From our point of view, such composition can attract huge TVL and it will be a great result for PowerPool. To increase the CVP value proposition we consider the CVP staking requirement.
Basically, every liquidity provider should stake CVP to get all benefits and cashflows from ASSY. Our vision is the following one:
- Liquidity providers, who supplied liquidity to ASSY without CVP staking will use just a basket of four assets
- Liquidity providers, who staked CVP will get a swap fee (0.2%), cashflows generated by composite tokens usage, and CVP rewards. It means that with TVL growth the amount of staked CVP will also grow (or a few LPs who staked their CVP will receive all cashflows and CVP rewards)
Besides the CVP staking option, ASSY will provide the following value to the CVP community:
- Fees. Huge TVL in ASSY can generate a lot of fees for CVP community treasury, mainly from token swaps.
Every index in the PowerPool ecosystem charges an entry, exit, and swap fee (0.1% for each of them). All charged fees are accumulated on a special treasury contract, belonging to the CVP community and will be used in the future according to community proposals (including distribution to active CVP token holders). Now this contract has ~$55k collected and this number grows every day: https://etherscan.io/address/0xD132973EaEbBd6d7ca7b88e9170f2CCA058de430
- Brand awareness and community growth.
Being publicly supported by huge Defi projects (ASSY composite protocols) will bring new community members to PowerPool, growing TVL, engagement in PowerPool indexes, and increasing brand recognition.
So, this “CVP absence” issue is taken in a smart way and will bring new value to the PowerPool community.
CVP token is useless? Is it used only for inclusion in indexes and as a reward for the LM program?
No, it is a completely wrong vision. CVP token has several solid value capturing mechanisms: cashflows from the treasury for active CVP token holders, meta-governance power, index governance power, and PowerOracle operation&governance. Read more about value creation patterns for CVP: https://medium.com/powerpool/understanding-value-of-cvp-token-and-meta-governance-value-creation-pattern-a530d1a1dec1
CVP as an index component was addressed in Ryan Watkins article: https://messari.io/article/understanding-cvp-s-role-in-powerpool-indices
When will ASSY be launched?
We estimate launch in 3–5 days after the community will finally decide on CVP staking terms, CVP LM incentives, and vote on ASSY proposal.
Do you support the boost for CVP rewards on CVP/ETH Uniswap pair?
We think that the community should decide on this. From our point of view, there is no reason to increase rewards for this trading pair. However, if the community would approve it, rewards would be increased.
Do you support CVP grants for community contributors such as content creators and researchers?
Yes, from our point of view it is very important to reward community members, contributing their time, knowledge, and expertise to PowerPool. Recently we funded a proposal aimed at Balancer AMM research together with Balancer Labs.
So, define the reward rules and issue the grant proposal officially!