PowerPool recent updates and development roadmap
During the recent month, there was a lot of stuff going on in PowerPool, mainly on the development and R&D side. This article shares what is going on in the project with the community.
A strategic focus on smart automated products
We published two papers on LUSD Balancer v2 pool,. This product is a combination of StableSwap pool launched on top of Balancer v2 which can redirect profits from ETH liquidations from Liquity Stability Pool (and mining LQTY tokens). It means that such a product generates a substantial AMM yield without additional token rewards. Besides that, this stablecoin yield product has the following features:
- It’s a first-ever AMM stablecoin pool yield product generating an additional yield from crypto market downtrend (ETH liquidations)
- This product generates more APY when the market is highly volatile
- We can consider it as a “safe short” stablecoin position since it generates more yield is the market is going down, at the same time being stablecoin yield product without risks of losing capital is the market will go in the opposite direction (growth)
This product will be built on top of Balancer v2, Liquity, and B.Protocol. The implementation scheme is following:
So, we made simulations based on available on-chain data, and for liquidations-rich January 2022, APY was around 24%. After that, we shared all our results with Balancer, Liquity, B.Protocol and received positive feedback and demonstration of interest in this product.
We started its development and now all asset managers and integrations are almost ready, security audit pending. The next steps will be:
- Formal governance voting with parameters of product launch
- Security audit (at the same time)
- Announcements with all mentioned protocols and educational materials regarding the product mechanics and recent yield estimation
- Mainnet product launch and marketing campaign associated with that
LUSD pool is an example of a product that is impossible without proper on-chain automation. PowerPool main product focus is exactly such products and is more than ETFs/simple structured products.
Also, we develop another product (similar to LUSD) on top of Arbitrum in stealth mode. Results of the research and concept will be published soon.
v2 UI/UX is delivered
Audience growth is complicated without great user experience and UI/UX. Understanding it, we already delivered a brand new UI/UX. You can test it yourself https://app.powerpool.finance/:
Alongside technical development, we are developing interfaces for new products. LUSD pool will be available both in PowerPool and Balancer v2 interfaces.
Development and other activity in stealth mode
Here is a list of other stuff that we work on, including brand new products:
- New product built on top of Tornado.cash.
We plan to deliver a simple automated solution for TORN governance stakers following the recent protocol update “Tornado Cash New Decentralized Relayers Network”. This update significantly enhances the utility of the TORN token and allows TORN holders to be rewarded in TORN paid as fees for governance participation. This product is in production.
- New product built on top of Arbitrum, Balancer v2, B.Protocol and Vesta.Finance.
We design a product similar to LUSD pool (VST StableSwap pool on top of Balancer v2 Arbitrum). Such a pool will provide secondary market liquidity to VST and offer substantial yield based on redirecting liquidation premiums flows into AMM.
- A series of research articles on On-chain automation.
During the era of Defi 2.0, on-chain automation is critically important. From our point of view, it is one of the most undervalued Defi sector now. It is why we developed our PowerAgent back in 2020 and focused on delivering highly automated products since they have serious advantages. We will share our view on on-chain automation and our research results in this space.
- Joint research with other Defi projects
It’s completely stealth mode now, but we hope to publish some results soon. One of the reasons we are doing it is that we plan to make automated products “on top of”
Stay in touch, more info soon!