🌊PowerPool & PowerAgent Automation Network
PowerPool DAO develops and operates the PowerAgent autonomous generalised, permission-less automation network allowing protocols to configure open-source, cost-effective EVM-compliant automation.
Overview and Vision
PowerPool is one of the original innovators in DeFi on EVM chains, pioneering many aspects of smart vaults and automation/optimisation of on-chain investment management strategies. PowerPool believes that on-chain protocols will need to invoke ever-higher levels of automation, and that autonomous, open-source, generalised and configurable automation networks like PowerAgent Network will be increasingly used as crypto usage broadens beyond early adopters
Smart Contracts cannot execute themselves...anyone can operate a node and join the PowerAgent Network!
Vision Statement: PowerPool develops and operates the PowerAgent permissionless, autonomous, decentralised EVM automation network supporting both third-party and own-branded non-custodial, composable, transparently-automated DeFi smart vaults and thematic structured ‘basket’ tokens. PowerAgent allows anyone to earn by running a node/keeper, and allows anyone to syndicate and launch broadly-diversified, actively-managed, rewards-rich, gas-efficient, multi-chain, automated vaults & baskets/indices, featuring auto-harvesting and compounding of BOTH intrinsic and extrinsic yield for the token holders.
{Note: the above Vision Statement is a summary for recruiting developers, PowerAgent node/Keeper operators, CVP/xCVP stakers and members/team leaders of the DAO. It is NOT a marketing blurb}
You can read more about our vision, roadmap, organisation and governance in our wiki: https://wiki.powerpool.finance/
Tokenomics: Staking & Governance
PowerPool is a fair-launched DAO with no dominant founding VC investor. The mission of the PowerPool DAO is to execute the above vision to drive maximum long-term value to the $CVP/xCVP token pair. There are a number of different dynamics driving value accretion towards the CVP token.
PowerPool has its own freely-tradeable governance token - $CVP (Concentrated Voting Power). $CVP can be purchased on various exchanges and optionally staked as xCVP to gain a share in the Net Asset Value (NAV) of the PowerPool Treasury, which collects steady streaming income from management fees charged to basket/vault investment token holders, 100% of which is paid out to xCVP stakers. Stakers of xCVP are also entitled to participate fully in governance of the PowerPool DAO.
The permissionless PowerAgent automation network requires participating nodes/keepers to stake at least 1,000 CVP to join the lowest value basic signer set, and optionally over time to increase their CVP staked to move up to higher value signer sets via competitive staking of CVP to accrue increased fees in CVP. Client protocols using the automation network buy CVP over time to pay fees to node/keepers. Increasing numbers of PowerAgent network nodes and client protocols increasing their stakes and budgets while spreading across multiple (EVM-compatible) chains/layers will create continuing buy pressure for significant numbers of CVP tokens;
All modular vaults and diversified baskets/indices/pools earn management fees which accrue 100% to the DAO Treasury. Buying and staking xCVP entitles the CVP staker to a share of the Treasury value, which can also benefit from capital operations like hedging;
Staking xCVP entitles stakers to influence votes on meta-governance initiatives affecting other DAOS whose tokens are held in significant amounts in PowerPool baskets/vaults;
Staking xCVP also entitles stakers to influence internal PowerPool product management decisions, often relating to yield optimising strategies for each token in a basket, rebalancing the percentage weighting of each token in a basket, the inclusion/exclusion of a token from a given basket, the proportion of a given sub-basket/pool in a higher pool-of-pools, and the decision to launch new thematic pools and pools-of-pools.
As the reach and workload of the PowerAgent network grows, and the size/value of the pooled investment baskets/vaults under DAO management grows, CVP tokens acquire more and more value, enhanced by their meta-governance power, as well as the value of their influence over intrinsic yield staking and value allocations within baskets managed by the PowerPool DAO. Like Curve veTokens, xCVP will be increasing valuable to other DAOs wishing to influence the yield strategies and token compositions of PowerPool vaults/baskets.
Networks and Technology Stack
PowerPool develops and operates a unique technology stack uniquely suited to active management of pooled digital assets:
1. PowerAgent Network: The PowerAgent network is a unique system for executing automatic smart contract calls, allowing protocols to harvest rewards, compound them, update pool weights, and make any other necessary on-chain activity automatically. The closest reference for the original version of PowerAgent would be Andre Cronje’s KP3R Network. After years of development, PowerPool is now deploying v2 of PowerAgent Network.
PowerOracle is a decentralized cross-chain oracle, providing free price feeds based on Uniswap TWAPs for Ethereum, xDAI, and Matic networks. Power Oracle is based on special incentive model for Price Reporter and Fishermen offering up to 50% APY for price reporting and utilizing CVP as skin in the game via CVP staking.
PowerAgent and PowerOracle networks are unique to PowerPool DAO, and necessary for active investment management in crypto:
● Harvesting rewards, maintaining yield-generation strategies;
● Updating composition, weights, other variables throughout the Power Universe;
● On-chain reallocation, even continuous constant redemption and minting new tokens;
● Retrieving necessary on-chain metrics for product operations - TWAPs, etc
● Paying regular dividends
PowerAgent can automate any on-chain activity that PowerPool DAO needs for active investment management.
Other asset management platforms either can’t use pooled tokens to harvest rewards or use AMM pools to build their products. AMM pools have high potential of Impairment Loss, while unique PowerPool technology takes the best from the both worlds:
● Supports intrinsic yield staking & harvesting
● Supports continuous rebalancing and strategy optimization
● Avoids Impairment/impermanent loss (IL)
This is achieved thanks to the Rebalancing window approach, about which you can read more here: https://medium.com/powerpool/a-new-approach-for-creating-indices-on-top-of-balancer-1c0d7abe2804
From version 2, PowerAgent and PowerOracle Networks will be open source and available for use by any EVM-based protocol, not only to achieve active crypto investment management strategies, but for any potential automation on a cost-effective configurable basis.
● Harvesting rewards, maintaining yield-generation strategies;
● Updating composition, weights, other variables throughout the Power Universe;
● On-chain reallocation, even continuous constant redemption and minting new tokens;
● Retrieving necessary on-chain metrics for product operations - TWAPs, etc
● Paying regular dividends
PowerAgent can automate any on-chain activity that PowerPool DAO needs for active investment management. Other asset management platforms either can’t use pooled tokens to harvest rewards or use AMM pools to build their products. AMM pools have high potential of Impairment Loss, while unique PowerPool technology takes the best from the both worlds:
● Supports intrinsic yield staking & harvesting
● Supports continuous rebalancing and strategy optimization
● Avoids Impairment/impermanent loss (IL)
This is achieved thanks to the Rebalancing window approach, about which you can read more here: https://medium.com/powerpool/a-new-approach-for-creating-indices-on-top-of-balancer-1c0d7abe2804
2. Wrapper and Router technology: Tokens in the pools are represented by piTokens (generalized wrapper tokens) while real tokens are staked somewhere using Router. If we need to change staking strategies, we will do it and it wouldn't affect the basket at all. For a typical pool like $BSCDEFI, if useful we can change Syrup Pools used for CAKE staking every day without problems. PowerPool DAO's asset manager tech inspired the Balancer v2 architecture, and no other asset management project has such flexibility and yield optimization potential;
3. Power Index: Because Power Universe pools are based on Balancer v2 AMM, constituent tokens are entirely governed by the community and can be used for generating additional value for pooled token holders:
Vaults strategies: PowerPool actively uses the constituent tokens pooled inside PowerIndex contracts for generating additional cashflows for the pooled investment token holders. By owning a Power Universe pooled investment token, the investor also owns future cashflows associated with productive usage of pooled assets.
Meta-governance: voting constituent tokens allows PowerPool to increase the value of CVP/xCVP, and the constituent tokens also qualify for potential distributions by other DAOs
Asset Management Vault Tokens Previously Launched:
$LUCY
ppTORN
$YLA - Yearn v2 Vault LP Pool - A risk-neutral, stablecoin automated yield optimization diversified portfolio of Yearn v2 Vault LP tokens with dynamically adjusted weights;
$BSCDEFI - Binance Smart Chain DeFi Blue Chips is a thematic risk-on (long) pooled token with intrinsic yield generation automatically earning yield for the token holders and providing exposure to a broadly-diversified pool of BSC DeFi protocols
$PIPT - PowerIndex Pool Token, our first pooled token originally proposed by Delphi Digital, contains UNI, AAVE, SNX, COMP, YFI, WNXM, CVP, and MKR in equal proportions.
$YETI - Yearn Ecosystem Token Pool, originally proposed by Ryan Watkins from Messari and contains YFI, SUSHI, KP3R, AKRO, PICKLE, CREAM, and CVP.
$ASSY - Aave, SushiSwap, Synthetix, Yearn pool, originally proposed by Marc Zeller from Aave and defined as a "concentrated bet on DeFi".
Last updated