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
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 :
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.
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 :
if there will be $50m boosted TVL, $2.5m worth of CVP will be locked.
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!
Love this proposal! A couple of questions:
I’m a little confused about the Boost mechanics - is there a minimum value for CVPlocked? In the 5% example given it states that $10K of ASSY needs $1K in CVP-ETH to get the boost. Is the idea that this 5% is a minimum, but LPs could provide additional CVP on top of that to get even more boost?
Could the Boost also apply to CVP staked in PIPT-ETH or YETI-ETH? Or is there a technical reason for excluding these sources of CVP?
Overall I think this looks great. It’s good to see that people will have an option to earn CVP holding ASSY by itself (making it much more attractive than buying and holding on your own), and the additional incentives for CVP holders creates a nice alignment of interests.
it is complex to implement this tech fast. CVP-ETH LP and PIPT are much more easier to implement .
Great idea with CVP lock for boosting rewards. This will neutralize possible pressure from farming.
I see no info about vesting for CVP rewards for LP. 10-weeks as usual?
Guys, thanks for great proposal… I can’t wait to invest
Vesting rules for all pools are defined within the same contract, meaning that all pools currently need to have the same vesting period by design. I would assume 10-week linear vesting here, but agreed that it should be clarified in the official proposal.
There was a possibility to set another rule by creating another contract if I am not mistaken. And this need to be clarified in proposal I guess)
Great proposal! Big fan of the Basic and Boost LM program
Huge ASSY right here.
Love bust idea.
It’s sounds like real challenge to implement correctly, but im definitely FOR this.
Looove it. Maybe on the powerindex.io pages of the index of ASSY and YETI, the top line should mention that “this index is a high risk/high reward play” to make sure that everyone knows. Maybe
yes, 10 weeks vesting
thanks for summing this up Marc,
I believe we should move forward with this, but my main motivation is that we need to breakthrough with TVL. because so far DeFi ETF use case doesn’t work properly: DPI, PP, PieDAo have relatively low TVLs. Compare with mith.cash easily aggregating $1 bn+ in a matter of days despite the founder’s reputation
Having said the above, we need to consider pretty important questions:
I would suggest decreasing the total boosted CVP rewards 2x (2,25 mn), or at least 1.5x (3 mn).
otherwise the marketing expenses are pretty high: we distribute $13.5 mn CVPs while investors are buying $2.5 mn CVPs (4.5 mn CVPs distributed vs 0.83 CVPs purchased)
Lets please vest the CVP rewards at least for 10 weeks (though I am suggesting 20 weeks vesting)
I am pretty sure Onsen is very good for TVL growth but very bad for CVP boost program, but I don’t have a solution for this atm, I was only able to advise on “how to include CVP in ASSY not including it”
but “how to include CVP in ASSY on Onsen not including it” is more complex hahaha
well, I see now that the #3 is discussable and can additionally boost the TVL, so by the sum of the factors I think its good to take this risk and to go with Onsen
Exciting! Thanks for the updated proposal
Regarding boosted CVP rewards, would you support the proposed rewards for the first month only?
I agree that the 4.5mn annual CVP distribution seems high given the amount of CVP needed to be purchased to earn these rewards, but this trade-off would look much better if we could reduce rewards in subsequent months (similar to the reductions for the PIPT and YETI pools). Those pools seem to have retained TVL despite rewards decreasing in January, so this could be a viable strategy.
Its a intersting idea.
I mean its will bootstrap the pool for a month or two…
We saw a few weeks ago what over supply (in an ALT bear phase is doing to liquidity pools…
Espeacily if the testing rewards will be add to the market in ~2.5 month time (not sure what’s the time line on this).
I am still thinking:)
As I see the idea is that most folks will ape into Onsen and when Onsen rewards go low they will realize that they can get more rewards in CVP via the boost program
What comes to mind first? Make fixed rewards like this
TVL <$25mn - 15% CVP reward
TVL <$50mn - 10% CVP reward
TVL <$75mn - 7% CVP reward
TVL <$100mn - 5% CVP reward
something like that.
Didnt model this yet, but the main idea is for this pool to have TVL aligned rewards, not time-aligned