Launch an index in the PowerPool ecosystem consisting of Yearn ecosystem projects: YFI, SUSHI, CREAM, AKRO, COVER, KP3R, CVP, PICKLE. The proposed weights of tokens will be: YFI 35%, SUSHI 17%, other tokens 8% each. The name of the new index is proposed to be “Yearn Ecosystem Token Index", with the ticker “YETI”.
The index will serve two purposes. For investors it would create a passive vehicle for broad exposure to the Yearn ecosystem - like an index on the Yearn conglomerate of protocols. For Yearn it would be a way of formalizing its recent mergers, aligning the treasuries and governance systems of the protocols in its ecosystem.
The index will allow Defi users to invest into the Yearn ecosystem using a single token, receive cash flows from Vault strategies applied to composite tokens, and vote on proposals in the Yearn ecosystem governance using PowerPool’s meta-governance approach.
We propose supporting the index launch with the following CVP liquidity mining program: 250k CVP for 1st month with 10 weeks vesting and YETI/ETH Balancer 80-20 pair with 200k CVP for 1st month with 10 weeks vesting. Re-define LM incentives at the end of the first month via the additional follow-up proposal.
PowerPool’s team recently launched the first ETF-like Defi index - PowerIndex with 8 Defi governance tokens. It attracted almost $6m TVL in less than 24hrs of operation, and offers investors both passive investment exposure to a basket of assets in a single token, and meta-governance and Vault strategies for composite tokens. In short it’s both passive investment exposure and passive participation exposure (let PowerPool make productive use of your tokens).
The Yearn ecosystem recently expanded through a series of mergers and partnerships, and now contains 8 tokens: YFI, SUSHI, CREAM, AKRO, COVER, KP3R, CVP, PICKLE. They all now share developer resources and community. However despite development and community resources being merged, currently governance among these protocols remains separate.
We believe there is a significant opportunity to create one simple instrument to invest in this ecosystem as a whole, while also more formally aligning incentives among Yearn ecosystem protocols through coordinated meta-governance.
The meta-governance layer implemented in PowerPool indexes offers a governance end-point for all index holders (YETI holders), allowing them to participate in Yearn ecosystem governance via a single interface. Not only will this align governance of the underlying protocols, but it will also help address some voter apathy issues apparent in some of the smaller projects within Yearn’s ecosystem.*
Referring to the Yearn ecosystem we are talking about governance in protocols besides YFI, SUSHI, and CVP, which have pretty active governance (these projects don’t experience voter apathy issues as we can see checking the community engagement in the latest votings).
Launch Yearn Ecosystem PowerIndex with 8 tokens: YFI, SUSHI, CREAM, AKRO, COVER, KP3R, CVP, PICKLE. The weights of tokens: YFI 35%, SUSHI 17% other tokens 8%. Ticker of the new index is proposed to be defined as YETI. Note, that token weights and token set can be changed in the future via community proposals.
Allocate CVP rewards for the first month of index operation: 250k CVP for 1st month with 10 weeks vesting and YETI/ETH Balancer 80-20 pair with 200k CVP for 1st month with 10 weeks vesting. Re-define LM incentives at the end of the first month via the additional follow-up proposal.
Special thanks to the PowerPool team and Delphi Digital for collaborating on this proposal.