Proposal discussion: ASSY index creation

  1. xTokens is a no brainer, guess we are all for this
  2. The fact this index will be a concentrated bet makes it inherently different then PIPT and YETI
  3. It’ll be interesting to see how NOT having CVP included will affect TVL captured, prob positively
  4. @Sergey 's idea of ASSY holders w/ CVP on their balances to receive revenue streams from strategies is an interesting option. Users supporting the meta-governance protocol will reap the benefits further benefits
  5. I’m against adding LINK or CRV

yes, correct questions.

I dont think the method of entering ASSY is a deal breaker - probably it ll be even easier to enter with underlying assets (e.g put YFI in ASSY and ASSY will buy the set of assets for your YFI and put them into strategies) - looks like this way will be the most effective in terms of the fee size

the only good alternative is when you converted all the assets into xTokens yourself and put them into ASSY in the right proportion, but this way doesn’t look like “seamless entry”

Anyway, what we can do here is just lay out all possible options and see how to optimize the fees (entry, conversion to xTokens etc.), for the users, this is pretty straightforward task, don’t see any issues here

absolutely. WACC in crypto is roughly estimated at 40% even for the core currencies. For emerging projects (SNX is an emerging one comparing to BTC and ETH), WACC should be higher

Thus in 12 months 14% adj by the time value of money will be not more than 7% anyway:)

I am questioning 2 fundamental things about this proposal:

  1. the demand side from investors - what makes you think that there will be damand to invest in those 4 particular assets … I could kind of see the rationale for PIPT and YETI but ASSY’s narrative doesn’t make sense to me at all…at the very least you will have some cannibalization from YETI…
  2. you say that YFI, AAVE, SNX, SUSHI are particularly highly correlated. Can you provide any underlying data/analysis? Also we are talking about assets with sub 6 months of data so any correlations can be taken with a pinch of salt

It feels to me we need to balance the potential increase of TVL from adding new indices VS the increase in free floating CVP (aka inflation) that comes with each index addition…if we end up introducing something that brings $1-2m of TVL but puts 450k new CVP into the market per month (like YETI does) then not sure it is worth it for the overall ecosystem…

re the #2 - agree, the numbers should be provided for each proposal.
e.g correlations and the calcs of initial weights for ASSY

re 6m - you are right, but this is an external risk we have no control of. and all the potential competitors are in the same situation.

ASSY is great in terms of adding TVL imo. re the rewards I am strongly FOR staying with initially proposed rewards schedule (i.e. to decrease the rewards each month)

Even though Im not okay with naming but Im in)

I wouldn’t count on it. In fact this index alone could bring in more TVL than PIPT and YETI combined.

Think about it : right now, CVP is positioned itself as a metaplay that only few can understand (you guies have minds). However it is out of reach for the many, because is it most definitely brainy and not sexy.

With ASSY, CVP gains the opportunity to benefit from much needed exposure and attract new crowd to the protocol. I agree the proposal needs to be fine tuned to favor CVP hodlers yet it is easy to see there is no big barrier to making it a reality.

No one ever went to the next level without trying something new : ASSY is dare experiment that can undeniably sparkle Powerpool environment, which is under your control anyway.

Now I don’t realize the opportunity cost or what alternative you guies would favor, but moving forward with ASSY should reflect pretty well on the project : it refines its meta and brings in another layer of awareness for growth.

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from the short sample of data we have - YES, $ASSY tokens ARE highly intercorrelated

Hello I’m a noob to Defi and PowerPool so excuse the naive question: When it comes to the #2, AAVE staking, let’s say someone has 100 AAVE to stake, does that mean they would have to purchase 100 ASSY to be able to stake the 100 AAVE?

disclaimer: yes I have never actually staked multiple tokens together, so I just don’t get how it works…

If you buy 100 AAVE and stake them directly you will get 100 StkAAVE. Which is erc-20 that represents your right on this stake.

When you buy or mint 100 ASSY, you will get 30 yYFI, 30 StkAAVE, 15 Sushi and 25 SNX in.

So basically you will get 30 staked AAVE + other coins.

I see. Thank you for your response. Still a tad bit confused in the sense of the ASSY protocol itself, bear with me.

I have my 100 AAVE, I put it into the protocol and it turns to 100 StkAAVE, which then begins to farm or harvest, (I don’t know the difference haha) AAVE at whatever the APY % is set at. Is this the right thinking?

But don’t I need to have purchased some ASSY to be able to do this? To participate in the harvesting of AAVE? Or just having the AAVE will be enough?

Read about ETFs and indexes.
Simillar stuff.

Different goals. If you want to stake only AAVE - just stake only AAVE. :slight_smile:

Here are considerations on the key question: how to include CVP not including it?

@Zero what’s you twitter mate? Wanted to mention you.
Thanks a lot for providing estimates for the strategies APY!

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I don’t agree…you have shown no evidence that ASSY would catch on…I still see no strong reason why ASSY would bring more TVL than PIPT and/or YETI…

this doesn;t mean anything

[quote=“annoyed, post:46, topic:508, full:true”]
you have shown no evidence that ASSY would catch on…I still see no strong reason why ASSY would bring more TVL than PIPT and/or YETI…

You are right friend, there is no evidence for telling what the future is made of, intuitions merely.

The reason is simple : ASSY spells Influencer Marketing and viral campaign, the power of Powerpool Index asset but with memetic character. A ticker that can rally communities and attract new investors alike : this is cool, desirable features for $CVP future.

The hurdle with PIPT and YETI is that they force users to take up a substantial position in CVP, which could be a big deterrent for many given its relative obscurity compared to other tokens in the index (moreso for PIPT where the index is mostly DeFi “blue Chip”).

I like Sergey’s proposal, which seems similar to the Curve model. Give users a way to earn yield to increase TVL, but allow for bonuses if they also hold the protocol’s token. Offering yield on a basket of established assets has to attract a lot of value, and increasing TVL should be a top priority right now.

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Against
We need CVP inside, otherwise there is no sense in CVP ant PowerPool model

I think this is a very good concept!

If this index is created, how many days after the index is created will the distribution of its investment income begin?

please check this out

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