The PowerPool Community Update
In this article we share the latest developments and future plans
The most recent PowerPool team activity
Our most recent activity was related to upgrading existing products, prototyping new ones, and collaboration with new Defi ecosystems.
Our vision for PowerPool is multichain.
As we think, PowerPool protocol should offer two essential products on each chain where it is deployed:
- The first product is the “one-stop-shop” for betting on Defi ecosystems. The product is a basket of tokens (index) consisting of the most relevant assets actively using yield opportunities associated with them.
- The second product is the Smart yield aggregator like Yearn Lazy Ape (YLA), providing one-click exposure to stablecoin yield on the selected chain.
According to this, we are working on:
- Negotiations with new chains regarding launching PowerPool products with support in marketing and rewards from their side
- Researching projects landscape and thair technical specification
- Simulation of new frameworks and mechanics for future products, including backtesting using historical data
We were excited to announce it, taking into account scalability, Defi ecosystem potential, and tech innovation powered by new L1 chains. Another important factor is that PowerPool products can potentially receive some rewards allocation for users and other resources for the product bootstrapping. Now we discuss collaboration with other chains aiming to deliver both types of products.
Development, research, and data analytics
Here are several topics SparkProd — PowerPool R&D team was focused on lately:
- The LUSD-staBAL meta pool as a stablecoin yield solution built on top of Balancer v2 fully utilizing v2 infrastructure.
The core idea of this product is to create a LUSD-staBAL StableSwap pool that can stake LUSD into Liquity Stability Pool and use staBAL for collecting BAL rewards in [DAI-USDT-USDC] pool. This research includes StableSwap model with an arbitrage agent modeled on on-chain data. According to our observations, such a pool can offer ~15% yield without additional rewards. It means that it does not offer new secondary market liquidity for LUSD against major stables, but also acts as a stablecoin yield structured product without any additional rewards allocation.
- The Window Rebalancing pool as a tech solution for ETF-like products.
We published our first article devoted to the Window Rebalancing pool concept some time ago. The core idea comes down to disabling swaps in the Balancer v2 pool, offering users a basket with tokens not exposed to IL risks. When it is necessary to rebalance the pool, initial weights are set and then migrate to target ones using our weights changing model. Such a pool also is designed to use the asset manager concept and generate additional yield by staking composite tokens.
- New strategies for Yearn Lazy Ape (YLA)
Yearn Lazy Ape is PowerPool flagship product, and we allocate resources to make it better and increase possible APY considering diversification. Lately, we backtested several brand new strategies using on-chain data and plan to share code on Github and publish a special article devoted to this topic.
- PowerPool Dune analytics dashboards
CVP/xCVP, Treasury, and YLA dashboards are live. Several others are in production. Drop us a message in Discord if you have an idea how to improve existing dashboards or create a new one.
- New L1 chains Defi research
Launching ecosystem indices requires a deep understanding of all projects and their on-chain metrics. We currently explored Harmony and Near ecosystem to launch a proposal with exact compositions and rationale behind it. You can find a lot of information about other L1 chains on the Community Wiki.
- PowerAgent v3 development
One of the PowerPool main features is on-chain automation for rebalancing strategies. PowerAgent is a network of agents executing contract calls according to product strategies. We are now researching possibilities to deliver the next v3 version of PowerAgent that can efficiently work on other chains such as Near, Harmony, BSC, and others.
- The new concept of modular PowerPool architecture
Initially proposed by PowerPool CTO, modular architecture brings a new level of abstraction to PowerPool products. The idea comes down to creating “vault” tokens instead of ordinary protocol tokens. For ETF-like products, Vaults will be Balancer v2 asset managers. However, the main advantage of such architecture is that any user can deposit funds in a particular Vault, not depositing to the whole index basket.
BSCDEFI Vaults are almost ready to go live and will be launched soon, creating new yield opportunities for BSCDEFI holders.
The next steps
Our next steps will be:
- Sharing all R&D results and information available, including Github repo.
- Deploying BSCDEFI Vaults code
- Conducting research according to our R&D roadmap
- Establishing Community Calls for discussion current resutls and upcoming products with our users
- Updating UI/UX