PowerPool X Spaces AMA with SupremeDAO — April 26, 2024
PowerPool and SupremeDAO, together with Paladin have completed a joint Community Call AMA discussing the upcoming launch of the Genesis Strategy, its inner workings, and how Paladin is used to sustain its profitability. We also dived into the future developments for PowerPool and SupremeDAO and answered questions from the community.
If you missed the call, we’ve prepared this recap article for you.
Spaces recording: https://twitter.com/i/spaces/1DXxyjYXBWNKM
Speakers:
Gordon Gekko @gordongekko_CVP
Vasily Sumanov @vasily_sumanov
Arseny @arseneeth
Ilya @isola
Recap:
Gordon: Hello, welcome everyone. While people are still joining, I will just introduce this AMA. This Spaces AMA session is part of a continuing series of PowerPool AMAs featuring guest projects that are building on the PowerAgent Automation Network. For those of you who don’t know anything about PowerPool, we are developers and operators of a DePIN automation services network. We develop and operate the PowerAgent Automation Network, a permissionless network of Keepers that is truly decentralized, truly open source, and truly trustworthy. We encourage other projects to build upon our automation ZK proving and off-chain compute framework because we are completely consistent with the Ethereum ethos of decentralization, extended to include trustworthy open-source decentralized automation.
Today, we have invited the DAOism Venture Studio. We’ve had them on once before, but today we’re going to focus on one of their DeFi asset management projects. It’s the Genesis project of their SupremeDAO, and this is going to be the first of many asset management projects for SupremeDAO. DAOism is a venture studio, so they also have many other projects in the pipeline, and many of those projects will also use the PowerAgent Automation Network to supply automation services and potentially also off-chain compute services.
So with that, I will start by introducing Arseny from DAOism. But first of all, I’d also like to introduce, from PowerPool, we have our Director of Research, Vasily Sumanov, and he’ll be answering questions a bit later on. All right, so this is Arseny from DAOism and SupremeDAO. He will take over and describe more about the relationship between DAOism, SupremeDAO, and the Genesis strategy being launched on PowerAgent.
Introducing DAOism and SupremeDAO
Arseny: Thanks a lot for the intro. My name is Arseny and I’m a co-founder and CEO of DAOism Systems. DAOism Systems is a venture studio as well as a research and development studio focusing on the intersection of DAOs and DeFi. Our main venture that we are focusing on right now is called SupremeDAO. SupremeDAO’s big vision is to become sort of an on-chain DAO-governed fund, which operates as a sort of decentralized network of independent investors that are automatically participating in high-yield opportunities across DeFi. That’s sort of the main vision.
Currently, we are working on our Genesis strategy. It’s an MVP of what automated compound strategies with automation agents can do. In the Genesis strategy, we focus on chaining together several mechanisms and DeFi protocols, such as crvUSD, Balancer, Aura, and Paladin. The main goal of this strategy is to give a significant yield on wstETH. By integrating these multiple primitives together, we can generate quite a significant yield on wstETH. The plan is to showcase the capabilities of this system with the SupremeDAO Genesis strategy and then move forward to implement the bigger vision, which is operating SupremeDAO as a DAO-governed, fully automated multi-asset on-chain fund.
Gordon: Well, that sounds like a perfect fit with PowerPool. As you know, PowerPool are the Original Gangsters (OGs) of automated DeFi. We innovated things like flexible weights on multi-token baskets and auto-optimization of yields across vaults with vault projects like Yearn Lazy Ape (YLA) and diversified multi-token baskets like ASSY.
What was it that led DAOism to pick PowerPool and PowerAgent Automation Network as your automation platform for SupremeDAO and other projects?
Arseny: So as DAOism systems, we had a great connection with PowerPool. Even from before the days when PowerPool was part of the Balancer ecosystem and I was working on PrimeDAO, we already were in contact. We saw that a lot of our values were aligned and continue to be very aligned. So yeah, we reached out to PowerPool. We checked out the new PowerAgent v. 2 network, which seemed pretty cool and was solving exactly the issues that we faced, such as automated smart contract execution. Right now, a lot of actions on-chain can only happen manually, meaning that the user must sign multiple transactions by themselves. But sometimes, especially if you’re working on multi-step strategies, automation is crucial. So that’s why we reached out to PowerPool. And they were kind enough to give us a grant to develop our Genesis strategy. And that’s how we started.
Gordon: Today, we’ll talk primarily about the Genesis strategy that you described, because that one is the first in the pipeline. But what other kinds of longer-term strategies do you see coming down the pipeline?
Potential for future strategies leveraging diversified LRT/LST baskets
Arseny: Yeah, I mean, we are exploring more possibilities, especially in the field of Eigenlayer, because re-staking is really hot right now. And we can easily imagine a SupremeDAO strategy that will be focused on Eigenlayer re-staking.
Gordon: I think that’s interesting as well. One reason being that a lot of people believe that holding a single liquid re-staking token (LRT) is really very risky, and that the best option is a diversified basket of different LRT tokens to get a lower risk and a higher return, given that the underlying yields are all subject to a random lottery in terms of ETH staking rewards and MEV. So do you see something like that, where you could be running baskets of LRTs and offering those as opposed to a single LRT token?
Arseny: Yeah, definitely. It’s an opportunity right there. Or, for example, if we want to mitigate the risks of LRTs themselves, because they could be quite risky as well, we can have a strategy that participates directly in Eigenlayer re-staking. But diversified baskets of LRTs also sound like a very interesting idea. We’ll think about it and maybe implement it further along the road.
Gordon: I mean, the basket strategy can also be addressed to LSTs. There’s a similar logic for liquid staking tokens (LSTs), rather than holding only one, it’s better to put them in diversified baskets, because you get a higher block coverage, so that’s better return, and you get lower contract risk, so that’s lower risk. But the really interesting thing is the combination of both LST and LRT baskets, because if you have a basket of LSTs, they’re looking for extrinsic yield, and people don’t really borrow LSTs that much. So you’re either LPing LSTs or you’re putting them into LRTs. And so you can actually have a family of baskets. You can have an LST basket farming an LRT basket for extrinsic yield.
Arseny: Yeah, definitely. That’s definitely a possibility. But right now we are focusing on more, I would say, more established projects, such as Aura, for example. We are definitely seeing a future when Supreme DAO is managing this DAO-governed liquidity on Balancer, for example, and using Aura’s power to boost up the yield. And for example, through Paladin, we could then even have the yield generation more sustainable. So through this Paladin veTokenomics Optimization Mechanics, we can generate a better and more sustainable yield.
Ilya: Yeah, I just wanted to add that my name is Ilya, co-founder of DAOism Systems and partner of Arseny. The overall goal of SupremeDAO is to launch our token $YAI, which will be backed by different baskets of assets and strategies. So our goal is to implement a range of different strategies based on LRTs, based on Aura, or other strategies we have in the pipeline and accumulate all the gains and the yield in one token, which is represented by the SupremeDAO $YAI token. So this is how we will distribute the risks and returns over different strategies and try to get the best risk-adjusted yield from the market possible.
Gordon: That sounds good. Vasily, could you sort of give some background in terms of what PowerAgent has done to facilitate these kinds of automated DeFi solutions?
Vasily: Yeah, so I will now provide a brief overview of decentralized automation. After that, I think it will be really important to focus on the current Genesis strategy, discuss it, and share more knowledge about how it works. And most importantly, where the money comes from. Because in DeFi, sophisticated users are always asking this question, because if you have some good yield or high yield, people are starting to think, OK, where does the yield come from, couldn’t there be some wreck or something like that? So since in SupremeDAO, in the Genesis strategy all the yield comes from rigid sources, we can easily explain how this yield is layered and where it comes from. I think we also need to focus on this topic during this AMA.
PowerAgent V2 — reliable “Transaction Signing as a Service”
Vasily: But let’s start with the PowerPool automation network we call PowerAgent v. 2. PowerAgent is an automation services network or maybe how it should be named in these current narratives, it’s a DePIN network. It’s a permissionless decentralized network of physical infrastructure offering a defined range of services. So it’s a network of real nodes running the special Keeper software created by PowerPool. This Keeper software allows us to send transactions according to some predefined conditions. The Keeper software uses an RPC endpoint to get all the information and all the events from the blockchain. We strongly advise our node runners, and currently we have more than 150 node runners in total across different EVM networks so far, that they should use the private RPCs hosted by themselves to avoid RPC instability in case of public RPCs that many people try to use. There can be some delays in event delivery or some limits on requests. So this is why we strongly advise our node runners to use private RPCs. This is why a lot of validators on Gnosis Chain, for example, run PowerAgent because they already have an RPC. The same can be applied to Ethereum and to other EVM POS networks where validators and solo stakers all have an opportunity to run PowerAgent nodes on top of their existing validator setup and just start earning fees. So as I said before, PowerPool operates the PowerAgent DePIN network of physical nodes, allowing the network to offer services, and earn fees for the node runners, based on what their nodes do.
These nodes send transactions according to predefined strategies. These strategies start from the PowerAgent origin contract, the main contract of the network. It is deployed separately on every chain. For example, on Ethereum, it’s one contract. On Gnosis Chain, it’s a different contract. On Arbitrum and so on, each EVN network runs a separate contract.
So the origin contract contains the information on all the tasks and all the Keepers registered to the network. So the tasks, they’re basically a smart contract with the number of actions, what should be done, why, and when.
Types of PowerAgent Jobs
Vasily: So we’ve had two main types of Jobs so far. One type is internal Jobs where some actions should be repeatedly done over some period of time, for example, every 12 hours or one hour or something like that. So for example, the DCA strategies, they’re buying or selling assets over time. This is a perfect and simple example to understand that you have a lot of manual actions that you can avoid if you’re using PowerPool. The limit order is an example of a one-time repeated action, sort of just a one-time action that is done according to some more complicated logic. For example, if Ethereum reaches a certain price, sell Ethereum or drop to some certain price to buy Ethereum. So it’s a resolver type of Job.
So the second type of Job, that contains some logic, which is not periodically based, but based on some on-chain conditions, for example, Ethereum price or some other asset. Or liquidation protection, which is based on the health factor of the position. That is also an example of this resolver type of Job.
But now we also have a third type of job so far that’s recently implemented — off-chain resolver Jobs, so that we can use some other conditions that we need in IPFS. This concept is widely known in web3 as Web3 Functions. So yeah, you can use some other data or some other information as a condition to execute something, to make some transaction.
When the condition is met, for example, the time interval, that block timestamp reached some particular time, or the on-chain condition was met, some Keeper from the network should sign this transaction and execute the whole strategy defined in the contract.
PowerPool VRF and Random Keeper Selection
Vasily: And this Keeper is randomly selected by the network itself, so it’s not like a queue where the Keepers are selected one by one or a gas auction that is done by some other automation networks. PowerAgent Keepers are selected by the random mechanism called RanDAO in Ethereum POS or in Gnosis Chain, which uses Ethereum POS consensus efficiently. But on some EVM roll-ups, like Arbitrum, we use ChainLink’s verifiable random function for that. So basically Keeper selection is verifiably random.
We also have developed our own PowerPool-based verifiable random function (VRF). We plan to deploy our own VRF on all other chains that do not support either the Chainlink VRF or the RanDAO Ethereum POS consensus to provide verifiable randomness available there, like Scroll and Optimism Networks, for example. So yeah, PowerPool soon will act not only as a Keeper network that sends transactions, but also as a service network that supplies verifiable randomness to different chains. We have some projects, for example Scroll, that are interested in that so far at this time.
Network reliability and Keeper slashing
Vasily: But let’s return to the Keeper operations themselves. So if a Keeper was selected to sign a transaction or to execute the Job, as we call it, and it didn’t do it on time, it can be slashed by some other Keepers in the network. So there is a specifically selected slasher, a designated slasher for a Keeper who has the ability to slash him to penalize his stake and execute the transaction instead of him in case of misbehavior. And the main misbehavior so far is just avoiding or failing to sign transactions. For example, if you’re operating the liquidation protection Job and the Keeper wouldn’t sign a transaction on time and save you from liquidation, you can be liquidated and lose some part of your stake, of your liquidity, the position as a penalty for liquidators. For example, in MakerDAO it’s 30% and some other protocols select around 7% or 10% of the whole position provided. So it’s a quite substantial amount for the user. It can be lost.
So this is why we’re focusing on the reliability of Keeper executions. And the slashing mechanics is one of the four points here that solve this problem. So yeah, I didn’t mention that, but we need to add that all our Keeper nodes are staking $CVP, the PowerPool native token. So at this moment, the PowerPool $CVP native token works as a work token model. So it means that this token, if it is staked, you can operate a node, and if you stake it, you carry some risks that your stake can be slashed in case of failure or misbehavior. But if you do the conditional action of signing transactions honestly, you receive the automation fee cash flow in the native token of each EVM chain. The cash flow is determined by the currency that is used for the gas payment. So it’s ETH in the Ethereum network, ETH on the Arbitrum network, because roll-ups are commonly using ether as a gas payment token. But on Gnosis Chain, the automation fee is paid in xDAI.
If we were to launch PowerAgent on the Mantle network, we would use the $MNT token because on the Mantle chain, they use a $MNT token as a gas payment token. So node runner earnings depend on the nature of the blockchain or roll-up design and how it’s designed to work.
So finally, long story short, if someone runs the PowerAgent Keeper node, he needs to stake our $CVP work tokens. He’s exposed to some slashing risks if his transaction won’t be signed on time. But if successful, the Keeper receives gas compensation and execution fees on top of that. So basically, execution by the PowerAgent Keeper node unlocks the fee cash flow in the native network-native gas token, e.g. ETH on Ethereum. xDAI on Gnosis Chain and so on. So Keepers staking the PowerPool $CVP work tokens unlock future automation fee cash flow assuming that all actions that need to be done by Keeper node are done on time and on cue. These staking and slashing mechanics ensure the cryptoeconomic security of the network and the honest behavior of the Keeper agents. This is critically important for such complicated DeFi products like the SupremeDAO Genesis strategy, which is based on all this sequential optimal yield-compounding stuff.
So I think this was a brief overview, like an introduction to PowerAgent. If you want to run a Keeper and earn some fees, you can launch new Keeper nodes perhaps using a bundle like DAppNode, and ask us for tCVP test tokens. Right now, PowerAgent v. 2 is in open beta testing. Keeper nodes are still using test tCVP tokens as staked collateral for the node just to avoid some unnecessary liquidations in case of some RPC problems and so on. But we plan to move to the mainnet $CVP tokens that have some value and are traded on exchanges like Binance really soon. At this point, all the existing tCVP Keeper nodes will be forced to change their stakes from test tCVP to real mainnet liquid PowerPool $CVP tokens. However, the good news here is that we plan to provide some node runner grants to new Keeper node operators to provide some minimum stakes. If you are running new PowerAgent nodes, you will get some minimum stakes for free from the DAO Treasury. Also, it’s worth mentioning that currently every week the most active PowerAgent Keeper nodes are already receiving some tradeable mainnet $CVP token rewards as an incentive. Especially for contributing to bug fixing, bug reports, and creating some educational content for onboarding other node operators. This is a community-based incentive program that we run and we’re proud to provide more and more $CVP to Keepers who contribute to the network.
Gordon: Okay, thank you Vasily. I noticed we have Paladin on the co-hosting of this Space. Do you want to say some things about Paladin’s role in this Genesis strategy?
The role of Paladin in Genesis Strategy’s sustainable yield
Paladin: I was listening in a bit, Gordon. It’s impressive to see how PowerPool has evolved. I remember when I was working around PowerPool, there were very interesting solutions around multi-token indexes, governance baskets, and governance lending, which is what we initially also did at Paladin. So I’m glad to see that these projects are still working in the same niche that has slowly evolved into some very interesting DeFi use cases today.
In general, what we’re helping SupremeDAO with is supercharging the yield by lending them to play the Zap function into LPs and using the bribe multipliers on different AMMs they’re going to play on to supercharge the yield, basically. So what we do at Paladin is that today we have both marketplaces, and in general we have project’s code and liquidity on-chain, but this can also be used to supercharge the yield like SupremeDAO wants to do with AAVE.
Vasily: I just want to add here that PowerPool also started from the meta-governance concept, and I’m so excited that projects like Paladin have implemented their own vision and added bribes to this vision for how it should work. Congratulations for that, it’s really cool. Now for yield strategies and yield products, I think the bribe markets and the opportunity to provide bribes and receive more yield on particular pools and strategies is very important. It’s a cornerstone of the modern DeFi stack. I’m really happy that you’re also a part of the SupremeDAO strategy and you’re making all of this possible.
Paladin: What’s actually interesting and I’m realizing as I’m hearing you speak is that a lot of what I would call dApps, which are not actually protocols, but are purely apps on-chain, have some part of off-chain computations and they could benefit from what you guys are building at PowerPool. So I’m keen on exploring more. Yeah.
Vasily: I just want to add here that we’re working a lot on off-chain computations, including the ZK proofs, and making it all automatically in a trustless way. Really a lot of dApps and a lot of yield strategies could abstract some computations from the on-chain environment to off-chain and save a lot of gas fees on that and just make it work much cheaper than now. But anyway, I think let’s return to the SupremeDAO Genesis strategy.
How the Genesis Strategy works
Vasily: So I think that now is a good time to make some pitch of how it works, where the money comes from, how much yield can be generated on $ETH, because at this moment everyone is chasing some points and re-staking yields. So staked $ETH is now the key asset, I think, in the whole crypto space for yield generation. People are taking it into some re-staking projects. They’re taking it to some Renzo, Kelp, and a lot of other re-staking applications on top of Eigenlayer. So they make points and re-staking on re-staking for some points and so on. As far as I know, SupremeDAO also plans to launch their own points program in order to distribute some airdrop tokens to long-term users and early adopters. Maybe SupremeDAO could elaborate more on their points program, on their launch strategy in general, how it works, where the TVL will come from, etc.
Arseny: The points program is just an idea that we are exploring right now because of market demands around the points. On our first launch, we don’t expect any points to be implemented, but they will definitely come in later, maybe even retrospectively for the participants of the Genesis strategy.
So let me talk a little bit more about the Genesis strategy and how it works. We don’t have our token right now, so we are mostly working with other people’s liquidity pools on Balancer and Aura. What we want to offer our users is to stake wrapped-staked Ether (wstETH) into the system, and this wstETH will be used as collateral on crvUSD. Then there is going to be a loan taken from crvUSD, from their CDP, and this loan will be swapped into the tokens of the liquidity pool that we are planning to farm. So in this case, these tokens would be staked in the liquidity pool, and they will start generating yield. This yield will be automatically swapped into either wstETH or crvUSD based on the health of the CDP. So basically, it’s going to be an automated health management of the CDP. Paladin, in this case, will be used for maintaining the yield on those pools that we are participating in through bribes markets to make sure that the yield is sustainable and that our users are getting enough profits. Ilya, do you want to add something to this?
Ilya: Yeah, you mainly said it. The main focus is on automation. So, like you said, we have a multi-level strategy to optimize and increase yield with the help of Paladin. We automate all the processes using PowerAgent in this case. And we launched the strategy in a few days. It should be launched next week or a week after. And then we will present other strategies which will be launched later.
SupremeDAO — an automated DAO-governed on-chain fund
Arseny: Yeah. So, this is the Genesis strategy that we are aiming to use to showcase the capabilities of SupremeDAO. And future strategies could be very similar to the Genesis one, but maybe we’ll be focusing on other pools, not just the ones that we are using right now. The plan is to launch multiple automated strategies in the future. And then we will work on bringing it all under the umbrella of the $YAI token. So, the $YAI token will be representing sort of a share of a user within the system. We plan so that the yield that is being generated by the strategies will be directly represented in the price of the $YAI asset. So, no rebalancing or yield paid in some unsustainable illiquid tokens. The yield is going to come in wstETH. And then it will be under this umbrella of a $YAI token.
That’s basically the reason why we like to call ourselves an automated DAO-governed on-chain fund, because that’s what we are aiming to accomplish. And yeah, maybe we can even talk a little bit about where the DAO comes in. The DAO here is crucial because the DAO will have the capabilities of whitelisting or delisting strategies. We expect DAOism Systems and other participants in the DAO to design and develop these strategies. But token holders of SupremeDAO will be able to participate in the governance and whitelist these strategies, basically adding them to the system and providing more opportunities for the protocol participants.
Gordon: So, does the SupremeDAO charge a management fee? And is that reflected in the value of the $YAI token as well?
Arseny: There is going to be a fee, like a performance fee on the strategies. But actually, our main goal is to have DAO-governed liquidity and participate in those pools as a DAO as well to sort of provide liquidity to these and generate a Treasury for the DAO so we can keep on going with the development and fund our operations. The $YAI token is effectively connected to SupremeDAO, but DAOism is a studio. So, you have other activities outside of Supreme DAO someday.
Gordon: Are those captured in the $YAI token as well or a separate token?
Arseny: DAOism Systems activities other than SupremeDAO are not captured in the $YAI token because DAOism Systems is more of a venture labs company that is building these ventures and providing these services to the DAOs. But we definitely bring our network on board because as DAOism systems, we work with multiple projects. We are pretty well connected in the Community. So, we want to leverage this sort of knowledge and soft power of DAOism systems for the prosperity of SupremeDAO and $YAI
Gordon: Right. And what is the token launch plan, you know, what is the token generation, event and token distribution? How are you going to get $YAI out there? Just in return for TVL or how is it going to be distributed?
Arseny: Yeah. So, basically, $YAI will not have any premium. It’s like when we launch the system, the users would be able to provide their tokens to SupremeDAO to mint this $YAI.
And then these funds will be picked up by the strategy and will be allocated to some high-yield opportunities.
Gordon: Okay. So, it’s basically a next-generation automated investment company where people put TVL into SupremeDAO and SupremeDAO whitelists a variety of highly automated strategies and the returns come back through a single token called $YAI.
By the way, the ‘AI’ in the $YAI token name, is that somehow connected to artificial intelligence or is AI not involved in any of these strategies?
Arseny: Actually, it’s a great question because we were thinking about strategies being managed by AI, but it’s a very early-stage idea, nothing that we are actively working on right now. But the name of $YAI comes, you know, it’s inspired by DAI or RAI, you know, this sort of token. There is also already a HAI token that recently appeared. But, $YAI stands for Yield Automated Instrument. In the early days of SupremeDAO, we were exploring stable coins actually. And we were thinking of how these automated strategies and the basket of assets could create a sort of new generation of stablecoins. But then we realized that that’s just not the direction that we want to pursue. We don’t expect $YAI to be stable. We expect it to appreciate in price if the fund is working well or yeah, if something’s going the wrong way, then that also could reflect in the price of the asset.
Arseny: But that being said, the strategies that we are developing could also be used to support the price of $YAI. For example, if there is some sort of event like massive selling of $YAI, we could have a strategy that will be buying back $YAI and burning it so that we really expect these strategies to benefit $YAI holders in the long run.
Gordon: Well, you could just set up a PowerAgent task to put your $YAI stops in place. But the issue of AI in Defi, I mean, this is something that PowerPool has to wrestle with as well. But really all that AI does is generate intents. And they might be good intents, they might be bad intents, and they might need a billion GPU flops to generate. But at the end of the day, they’re just intents. What’s interesting for us as PowerAgent is the way that the executions get automated. I mean, one future is that everyone running an AI model has their own home-rolled keeper bot, which is a single point of failure, and also is a lot of extra work. But we think that AI systems should just generate intents and then literally hand them over to PowerAgent. But this is currently an open conversation, if you like, that’s going on everywhere.
Arseny: Yeah, I think that that makes a lot of sense. I think AI, by being able to process vast amounts of data, could make decisions on some sort of resource allocation in different strategies. Maybe in the future, perhaps a year from now, I don’t know exactly when, we can have a strategy that is not purely algorithmic, the way how we design them right now. But instead something where an AI agent has full power to decide where to provide liquidity and what yield opportunities to take on.
Gordon: Yeah, my own opinion is that in terms of vaults and baskets and DeFi optimization, the data is all on chain and the algorithmic computations don’t require, you know, LLMs and massive GPU farms. PowerPool is trying to develop all the off-chain compute capabilities to support almost everything short of AI. I could be wrong, but I’m not 100% convinced that AI-generated intents are needed for asset management on-chain. Instead, what’s needed is the seamless combination of automation and trustworthy off-chain compute, which is obviously what we’re trying to provide.
Arseny: Yeah, I agree. I would definitely say that AI making decisions on doing any on-chain actions, today that would be just an experiment. That’s not something that people do right now. Maybe big TradFi funds, you know, like BlackRock or whatever, maybe have those systems in place for bonds or equities. But for open protocols operating in the DeFi space, AI would definitely be an experiment. And like all of the experiments, it can go wrong or right, but it’s definitely something to explore for the future.
Gordon: Do we have any questions yet from the audience that we want to look at? I can’t see any on my — the problem is my mobile phone, X doesn’t pick up the comments very quickly. Okay, well, there was a question already posted yesterday:
Q1: How does PowerPool address concerns regarding potential centralization?
I actually answered this question on X yesterday. PowerAgent is canonically decentralized. Canonically, what that means is according to the religion of Ethereum. So open source, totally decentralized, permissionless, very light clients, any number of nodes can join. And what that means is that PowerAgent is the opposite of a centralizing force in automation. If you look at some of the other options, like Gelato’s ‘rollup as a service’ solution or Chainlink’s DON-based services, their automation services are provided via their big, heavy, whitelisted multi-service nodes that offer automation as part of bigger commitments, if you like. They are centralizing to some extent.
But PowerAgent is the opposite. PowerAgent is the answer to the question, how do we avoid centralization and still have automation, which has been missing from the EVM? The EVM probably should have been originally built with automation, but it wasn’t, and so now we need to add an automation layer. PowerAgent is another specialized layer or module, if you like, in Ethereum’s evolution towards becoming a more complete modular chain similar to other newer modular chains. We are adding the missing EVM automation layer or module to EVM-based solutions. And it’s absolutely increasingly needed. But in order to say, yes, we are extending the modular Ethereum EVM functionality, we need to be truly canonically decentralized. In other words, we need to be a decentralizing force, not a centralizing force. And we are. And we are the only ones in the EVM ecosystem.
Q2: I have a question for SupremeDAO. What strategies has SupremeDAO implemented to ensure transparency and accountability of its operation, particularly in managing users’ assets with the Genesis strategy, and how do these measures bolster users’ trust in the platform’s integrity?
Arseny: So, we will be fully open source after the launch, so our smart contracts will be verifiable by the community on our GitHub page. Our strategy has most of the logic of what’s going on with the strategy and what sort of logical steps are we taking in order to manage users’ funds. Yeah, I hope that answers the question.
Q3: Could you elaborate on how SupremeDAO plans to integrate Paladin in the future to further enhance the strategy returns?
Arseny: So, yeah, we’re definitely seeing in the future that a fraction of the yield will be automatically used on Paladin in order to bootstrap Paladin’s re-optimization mechanism through bribe markets. So, that’s the way we see we can sustain the yield that is required for the users for the strategy to stay profitable.
Gordon: Okay. Well, I don’t see any other questions. So, at this point, I guess the best thing to do is just to wrap up and say that, obviously, we as PowerPool are extremely happy to be working with DAOism, Paladin and SupremeDAO. We expect to be working with them for quite a while. We plan to help SupremeDAO roll out not just one Genesis strategy, but all of their future strategies. And it is also useful to have someone like Paladin involved in these strategies. The Roadmap for PowerAgent itself is very much on track and adding these client projects and highlighting them is the best way to make sure that the PowerAgent network is evolving to meet the needs of the clients.
Arseny: Yeah, totally. Thanks a lot for this opportunity that PowerPool provides us with. And we are really looking forward to our long-term collaboration and future events that will happen around SupremeDAO.
Gordon: When do you expect the $YAI tokens to be available?
Arseny: This is a great question. We don’t have any timelines yet. But when we launch our Genesis strategies and we have some traction, we aim to participate in some fundraising activities in order to fund the project further and in order to set up liquidity pools that are governed by the SupremeDAO so we have more control over the yield generation.
Gordon: Okay. Vasily, did you have any closing remarks?
Closing remarks
Vasily: I think, yep. I just want to share that, first of all, we are really happy that finally SupremeDAO launches their first Defi strategy. So we’re really happy to test it. We’re already doing testing. And yeah, also looking forward to the points program. Since PowerPool plans to introduce our own points program and a lot of new stuff for the community really soon, I think that it can be a really big synergy for PowerPool users and SupremeDAO users at the same time and for node operators as well. So yeah, let’s keep the synergistic building, guys.
Arseny: Yeah, totally thanks a lot for that. And definitely looking forward to synergizing the point systems. We actually have a lot of really cool ideas for the points. For example, one of the ideas that we had, it’s not 100% confirmed but we had an idea of leveraging the Ceramic network decentralized database for points storage. I think that would make our project more web3 native and less dependent on the legacy infrastructure, such as AWS and or a classic database like Postgres or whatever.
Vasily: Cool, yeah. So the more decentralized building blocks you’re using in your stack, I think the better. So yeah, congratulations on that. Or maybe you can explore some other points databases as well. There are already a few launching on the mainnets now. So maybe you can even combine your point system with them. I don’t know. So I will do some research and provide some ideas to the group for the code.
Arseny: Yeah, yeah, that would be amazing.
Vasily: So thank you, guys. See you on some future AMAs. Hopefully the Genesis strategy will be launched on Genesis Day soon. So looking forward to the launch and we will support it, of course, and try to bring as much brand awareness as possible to SupremeDAO and the points opportunities and to all this cool stuff.
Arseny: Thank you. Thanks a lot.
