We as a core PowerPool team propose an ecosystem partnership with xToken - project automatizing yield harvesting & re-investing for staking tokens. Based on that, we propose to use products called “xTokens” such as xINCH xAAVE xKNC, and as a building block for PowerPool structured investment products.
xToken is an ecosystem of xTokens - products that can be defined as simple Vaults for a specific token. For example, for 1INCH it harvests 1INCH governance staking rewards and adds it to the main staking position, compounding yield and saving gas costs that could be spent on this operation. We already had a call xToken team and discussed possible ways of integrations.
xTokens are auto yield compounding building blocks. Being used as components of PowerPool products, xTokens can save time for development and allow to build capital-efficient structured investment products for PowerPool users. Since xTokens are ERC20 tokens they can be easily added to any product (however, we should clarify DAMM strategy for these tokens taking into account value growth based on accumulated interest). The investment vehicle composed of xTokens compounding interest in real-time is a good example of an Unlimited ETF product built on PowerIndex v2 and Dynamic AMM.
We consider adding xTokens to PowerPool products as a win-win strategy for both protocols since it will boost TVL and user experience for users of xToken/PowerPool.
We propose to make following steps:
(1) establish ecosystem partnership with xToken
(2) add xTokens to all new PowerPool investment vehicles where it is possible taking into account technical specification and parameters of Dynamic AMM strategies