$PIPT: PowerIndex Pool
PIPT is an LP token of PowerIndex, representing index share and associated CVP voting rights
The main PowerPool index - PowerIndex is an index focused on providing exposure to DeFi market blue chips. It is composed of 8 tokens and is included in CVP liquidity mining program (requires staking PIPT-ETH Sushi LP tokens for receiving rewards).
PIPT is a share of PowerIndex, representing a basket of 8 tokens. Its price depends on the price of these 8 tokens. This token can be issued only by supplying liquidity into the PowerIndex.
There are two main options to obtain PIPT:
- 1.Mint PIPT directly by providing liquidity to the contract. Using this option you need to have supported governance token(s) or popular assets such as ETH, WBTC, USDC, etc). If you provide governance tokens they will be deposited directly into the pool. In the case of ETH/WBTC/USDC the special contract will buy a token portfolio for you on Uniswap and supply it to the pool. Anyway, finally, you will receive PIPT tokens according to the liquidity you provided.
- 2.Buy PIPT on the secondary market (for example, on Balancer).
Here are they:
- 1.You can hold the portfolio of assets in one token.
- 2.Holding PIPT you own future cashflows. Index contract uses pooled tokens for generating cashflows for index users. For example, AAVE is placed in AAVE staking, YFI is staked in the YFI staking contract and used for voting. There are Vault strategies for other tokens as well. All income from these activities is distributed to the PIPT holders.
- 3.You can influence the markets of 8 governance tokens holding PIPT. Owning PIPT you can participate in index governance. It means that you (and other users as well) can change token set, token weights, and index fees via proposals. Weight changing effects now only index composition, but markets of tokens which weights were changed. In the case of huge liquidity in the index, it will be a huge power.
- 4.You can participate in the governance of 8 protocols holding PIPT. PowerIndex uses all pooled tokens for voting, and how these tokens will vote to decide PIPT and CVP holders. Note, that CVP is in the index composition, due to it PIPT holders can cast their votes. You can also participate in voting on any PowerPool governance proposals (even if they do not affect index composition).
Further $PIPT reading:
1. https://medium.com/powerpool/understanding-powerindex-the-pipt-token-magic-7a6ecde849ec
2. https://medium.com/powerpool/power-index-explained-pipt-f5c06d43f77e
3. https://medium.com/powerpool/understanding-powerindex-index-fees-and-cashflows-for-pipt-and-cvp-holders-8a11c82a4d6f
Last modified 2yr ago