$CVP: Understanding PowerPool’s CVP Token Model

PowerPool CVP token is meta-governance token used for decision making regarding usage of accumulated voting power in PowerPool ecosystem

PowerPool CVP tokens refers to Concentrated Voting Power. It functions and related value creation patterns are listed below:

  1. Meta-governance value creation pattern. CVP token* is the only token for decision-making regarding voting power of pooled tokens. It means that bigger TVL correlates with bigger voting power in hands of CVP token holders

  2. Index governance. CVP token holders govern PowerIndexes, what means that they can change token set (add or remove tokens), token weights, and fees. Each addition/removal/changing weights of a token in index can significantly affect price and capitalization of this tokens. It means that bigger TVL correlates with bigger influence of CVP token holders on Defi market.

  3. Future cashflows. PowerIndexes collect entry, exit and part of swap fee on a special contract (CVP treasury). Collected fees will be distributed to active CVP token holders (activity metric will be defined by the community; currently vision is that eligibility is based on CVP locking into a special contract and frequent voting on proposals).

  4. PowerOracle participation and governance. CVP token holders can stake their CVP in PowerOracle and get up to 50% APY by participating in operation of the PowerOracle on Price Reporter and Fishermen positions. The set of price feeds is curated by CVP token holders as well.

Read the comprehensive guide to CVP token design and related value creation patterns: https://medium.com/powerpool/understanding-value-of-cvp-token-and-meta-governance-value-creation-pattern-a530d1a1dec1

*as well as LP tokens containing CVP inside, such as CVP-ETH LP, PIPT, and YETI