Hello everyone,
First, I want to thank all the community for their feedback and the warm reactions for the $ASSY discussions. After nearly a month of discussions I think the project is now mature enough to be upgraded to a fully-fledged proposal.
This proposal has been made thanks to the support of the Powerpool team and the feedback of the Powerpool community active Devs.
ASSY proposal :
$ASSY will be a Powerpool index including StkAAVE, aSNX, xSUSHI, YFI with the following breakdown :
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The SNX strategy for the launch will be low-risk and conservative with SNX deposit into AAVE to start the index and can be at regular interval re-evaluated by the community to seek for more Yield.
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As StkAAVE has a 10 days cooldown period to be swapped back into AAVE, 5/15% of the AAVE holdings of $ASSY will be kept in AAVE form to allow more seamless minting/burn of $ASSY with their underlying assets, this ratio will be regularly re-evaluated with market data to find the perfect balance between liquidity and yield.
Basic ASSY assumptions:
- Concentrated highly-correlated bet: 4 productive Defi tokens. Grow together/drop together ASSY is a high-risk/high-reward bet
- APY from ASSY without CVP rewards:
“Medium scenario”: 10-14%.
7-10% APY from Vault strategies (YFI staking, AAVE staking, xSUSHI) , 3-4% APY from swap fees going to LPs (0.2% swap fee)
- ASSY theoretical performance (since proposal publication ~a month ago already) is already > +100%)
CVP LM program
There are two options from LPs in the ASSY LM program: Basic and Boosted ones.
Basic: 800,000 CVP per year or 66,666 CVP per month. It will provide 3% APY ($50m TVL, $3 CVP price) for LPs who didn’t stake CVP-ETH LP or PIPT for a boost. We suggest to re-define this number from time to time, for example every month. Simple calculation - LP share in overall TVL corresponds to the share in block reward.
Boost: 4,500,000 CVP per year or 375,000 CVP per month (+28% APY for $50m TVL and $3 CVP).
The share in TVL has 50% impact on boost, and the share in staked CVP-ETH/PIPT has the remain 50% impact:
wCVPlocked =share in overall locked for LP (CVP-ETH Uni LP or PIPT)
wTVL = share in overall ASSY TVL
CVPlocked should be at least 5% of supplied liquidity. CVP is staked in the form of CVP-ETH LP or PIPT) (is re-calculated after provision of new liquidity or withdrawal for current LP).
Examples for your consideration :
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if there will be $50m boosted TVL, $2.5m worth of CVP will be locked.
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if we want 5% CVP locked, it means that if you deposit $10,000 into ASSY and want to boost your reward, you need $1000 in CVP-ETH (taking into account that $500 is ETH) or $4000 in PIPT (taking into account that 87.5% of that or $3500 are Defi blue chips).
Sushiswap Onsen Program
The $ASSY asset will be a candidate to the sushiswap LP rewards program “Onsen”, to allow Liquidity providers of ASSY/ETH to be rewarded in SUSHI.
$ASSY holders willing to provide liquidity to earn extra yield will then have three main paths, the CVP basic, Boost and the Onsen program.
All of this liquidity will be concentrated into Sushiswap reinforcing low slippage acquisition of ASSY assets and the collaborations between the sushiswap and powerpool protocols.
It’s up for discussion for the community but mid term, I will recommend most of the LM programs to be migrated to Sushiswap liquidity provision including CVP-ETH.
Quarterly ASSY updates : ASSYNOMICS
As the SNX part of ASSY can be optimized, I’ll suggest that the Powerpool community support a non-binding quarterly “Assynomics” program to re-evaluate and find new opportunities to extract more yield from assy and optimize the asset : SNX strategies, CRV accumulation, exploration and partnership with xTokens project
Defi constantly evolve and taking the time as a community to re-evaluate the asset every 90 days can be a good opportunity, the assynomics should be non-binding and if a consensus should not be met, the previous assynomics plan stays enforced until modification.
Thanks everyone and let’s get some ASSY into the markets!
