Power Index

Power Index short introduction

PowerIndex is a pool based on Balancer AMM with three significant modifications:

  • the ability to dynamically change the weights of tokens by Controller smart contract ;

  • the ability to call other contracts by Controller smart contract;

  • protocol commission for entering / exiting the pool and swaps.

It may be useful to read the Balancer Whitepaper or documentation for additional context.

Initially, the idea of the Power Index was proposed by Delphi Digital on the Forum and developed by the project team.

In the documentation, we will use the terms pool and index simultaneously, considering them equivalent.

Power Index as Balancer is based on an N-dimensional invariant surface which is a generalization of the constant product formula described by Vitalik Buterin and proven viable by the Uniswap dapp.

But unlike Balancer, Power Index uses pooled tokens for staking into underlying protocols, collecting protocol rewards (if possible), and voting.

In the future, it will be possible to use pooled tokens also for various vault strategies that maximize the pool's profitability.

Pools parameters are managed by PowerPool Governance.

There are currently four PowerIndex pools:

  1. PIPT - PowerIndex Pool Token. It was proposed by Delphi Digital and contains UNI, AAVE, SNX, COMP, YFI, WNXM, CVP, and MKR in equal proportions.

  2. YETI - Yearn Ecosystem Token Index. It was proposed by Ryan Watkins from Messari and contains YFI, SUSHI, KP3R, AKRO, PICKLE, CREAM, and CVP.

  3. ASSY - Aave, SushiSwap, Synthetix, Yearn Index. This index was proposed by Marc Zeller from Aave and is defined as a "concentrated bet on DeFi".

  4. YLA - Yearn v1 Vault LP Index. A diversified cashflow-generating portfolio of Yearn v1 Vaults LP tokens with dynamically adjusted weights according to the TVL

The community is currently planning to launch several more indexes. You can follow the current situation on the Forum.

The most recent version of the contracts is here: