Proposal 43: Strategies for AUM

Proposal 43: Strategies for AUM

Yield generating strategies for assets from Indexes through LP on AMMs, Lending, Staking and Rebalancing.

Currently it does not exist any index that generates Yield. YLA was the first. Leveraging Yearn Vaults, created an interest Bearing Token for stablecoins. While in DeFi nearly all assets have some utility that generate revenue, for the average investor with a portfolio of at least 5 tokens it would take time to research and keep up-to-date with new yield farming opportunities for all of its tokens. Not to talk about gas fees.

Applying strategies on the backend searching for the best return would solve it, and diferentiate Powerpool from competitors.

Creating Smart Indexes and being able to perform high yielding strategies that generate value just by holding the underlying asset, would be a huge step forward from TradFi and even for current crypto indexes from other projects. Simplifying crypto investment and helping to onboard masses to crypto.

Assets will have predefined strategies allocating funds to different protocols based on a risk/reward method that will be changing dynamically.

Proposed protocols:
AMMs: Uniswap, Sushiswap, Curve, Bancor.
Lending: Aave, Maker, Compound, Anchor, Alpha, Alchemix.
Yield Farming: Yearn, BadgerDao, Alpha,
Staking: For Smart Contract platforms (eg. via ANKR) and Fee accrual (xSushi, ibBTC, veCRV, bLuna, SNX…)

So Ethereum strategies could be:
• LP on Sushiswap (LM Sushi+Fees+IL protection),
• Lend it on Alpha/Alchemix I obtain ibETH/alETH,
• Stake on ETH2.0
• Lock it on Yearn Vaults.
• Lock it on Curve Vaults.

And for the Smart Contracts Index (8) proposed on Proposal 42, yields for Staking would be the following: Ethereum 6%, Binance 9,6%, Cardano 6,5%, Polkadot 13,25%, Polygon 15,3%, Terra 11,75%, Solana 6,7%, Cosmos 8,9%.
With those yields the Index would generate a base APY of around ~ 8,7%, while securing 8 networks at the same time and reducing the circulating supply of the underlying.

Single Asset Vaults
If it is possible to apply yield generating strategies on pools with 8+ tokens. It should be feasible to create vaults that apply those strategies on just 1 token. Like Yearn Vaults. For users that don’t want to diversify across different assets through powerpool investment pools.

That is a great idea, and the productive utilization of tokens is actually what is planned for the upcoming portfolios.

Thanks to the Wrapper + Router solution the Powerpool team developed some time ago.

The New Vision assumes that automation of yield optimization strategies on pools will enable PowerPool to rapidly grow AUM versus competitors that do not harvest yield on behalf of token holders. Each Product Development page in the Wiki has a separate section where the yield optimization strategy for the pool needs to be defined, as you are doing here. May I suggest that you join SparkProd, access the Wiki, and add these suggestions as subpages to the many pool ideas that are currently being refined?