The road to DAMM: launch of PowerOracle v2
Today we’re launching the key component of DAMM infrastructure
The weight changing process in DAMM pools is triggered by controlling signals. For example, the simplest indicator, triggering weights changing in PowerPool indices can be M.Caps of underlying protocols. However, M.Cap calculation requires price feeds and signing of transactions for updating weights. So, it requires a protocol maintenance system, which is PowerOracle v2.
PowerOracle v2 was designed especially for maintaining dynamically updated systems such as PowerPool DAMMs. Its architecture allows it to execute weight changing events for DAMM pools on schedule, using a price data feed and the strategy contract.
The core element of PowerOracle v2 is the Poker agent:
A Poker — an agent, calling contracts periodically and executing operations, critically important for the network operation.
Poker performs the following operations:
- Calculation of TWAPs (Time-weighted average prices) using DEXes
- Execution of weights changing strategies in DAMM pools
So, Poker ensures that PowerOracle and DAMM pools will operate correctly. This is why economic incentives are very important for security reasons. The economic model is very simple: Poker receives gas compensation and the yield on his stake in CVP tokens. The Poker role previously was named as Price Reporter: it is an agent with the biggest stake in CVP. If Poker wouldn’t pull the contract in a specified time period, any other oracle worker (Fishermen) can call it and simultaneously slash his stake for 10%: 5% is his reward, and 5% goes to the community pool.
DAMM mechanism powered by PowerOracle v2
PowerOracle v2 is created to maintain the correct operation of DAMM pools. It works as follows:
Poker calls the strategy contract -> Strategy contract requests price feed from PowerOracle contract and calculates M.Caps and new target weights based on them -> Strategy contract calls Controller contract -> Controller contract triggers Balancer Pool contract to start weights changing procedure.
PowerOracle v2 can execute much more complex strategies for DAMM pools. For example, they can be based on TVL in protocols (what is actual for Yearn vaults index), price changes (according to specific strategy), and even volatility of underlying tokens. This is why PowerIndex v2 is named Unlimited ETF — creativity is the only limit for indices and smart traded portfolios built on top of it.