xCVP is a set of smart contracts implementing strategies for converting PowerPool treasury holdings into CVP for rewarding CVP stakers.
xCVP automatically exchanges PowerPool treasury holdings to CVP, and adds this CVP to the xCVP pool. It means that CVP stakers receive their part of protocol fees over time and directly benefit from the success of the PowerPool DAO. When xCVP is redeemed, the user receives more CVP that was initially deposited. As an added benefit, xCVP is an option for staking CVP without risks of impermanent loss.
The PowerPool charges fees from the products it offers. Currently, a 0.1% fee is applied both when entering and exiting an index, in addition to a 0.1% swap fee for legacy pools.
The treasury now consists of 36 different ERC20 tokens, including Defi protocol tokens, PowerPool product tokens such as PIPT, YETI, ASSY, YLA, and Yearn Vaults LP tokens. The xCVP contracts have strategies for converting all 36 of these tokens to CVP. The bigger the TVL and usage of the protocol, the more protocol fees can be collected.
Every set interval of time "T", the xCVP contracts are called by Power Agent. The contract exchanges SET amount of treasury holdings to CVP and adds these CVP tokens to xCVP pool.
Amount of CVP bought and deposited to xCVP: 3000 per 72 hrs or 365,000 CVP per year. This means that the APY for 1m of staked CVP will be 36.5%.
Exit fee: currently there is no exit fee for xCVP, but it can be set up by the DAO voting.
Lock-up: there is no withdrawal lock-up now, but it can be set up by the DAO voting.
The security audit was performed by Pessimistic. Link to results.