Proposal discussion: future fee distribution and the creation of xCVP

but how to distinguish those who voted, especially taking into account upcoming Snapshot votings (when it will be developed)?

“The idea of the PowerPool team is to reward those CVP holders who have locked their tokens using the VoteLock function and actively participate in voting on proposals.”

It’s from the article I mentioned before.

yes, vote.lock feature can be implemented in xCVP.

For xCVP we should decide:

  1. How fees collected on this contract will be traded to CVP. Daily/Weekly basis? Team multi-sig execution or the contract that everyone can pull and execute swap?
    If we will make it too frequently, gas costs will be crazy. Imagine trade of 15+ ERC20 tokens on 1inch, and redeeming PIPT/YETI/ASSY to CVP. It can cost >$1000-$1500, or even more

  2. Who will be eligible to receive these rewards? in xSUSHI or 1inch governance staking everyone receives a reward, even if he didn’t participate in voting.

For CVP we can probably distinguish people who voted and didn’t vote, but it will add a new level of complexity to the contract, and increase gas fees for deposit CVP or redeem xCVP.

Yeah, and all of it will work if PowerPool will be governed on-chain (as of now). But, due to huge gas fees we shifting all governance operations to Snapshot (which will account for PIPT YETI, their LP tokens, and CVP-ETH LP tokens for voting). So, no real on-chain governance for now. In the future, we expect to release an L2 solution that will work as on-chain voting but with almost zero gas fees [this solution is at the R&D stage].

We will release our vision to xCVP in the today’s team statement

Hi Michel,

I absolutely agree with your proposal. Was also great chatting with you on Discord a few days ago.

To expand the use cases of CVP, PIPT, YETI, ASSY, etc. and increase the stakers’ capital efficiency, we should have a look at what the Bancor team is doing with their Vortex proposal: https://www.youtube.com/watch?v=SbUqcbNqQ-Y

Basically, the xCVP/ xPIPT/ xYETI/ xASSY (xTOKEN) token is minted whenever a user stakes the respective token into one of the Powerindex pools. To unstake, the user must present the equivalent amount of xTOKEN in their wallet. Once the xTOKEN is minted, the user can then stake it in a xTOKEN/CVP pool to earn a yield, or swap it for any other ERC-20 crypto on the exchanges, etc.

This would increase the TVL of Powerindex pools, increase use cases for CVP/PIPT/YETI/ASSY/etc. as well as the APY, and reduce selling pressure on CVP by incentivizing holding it.

In a addition to this idea on top of that what if we replaced cvp farming rewards with xCVP rewards. If users deposit cvp they get xCVP as per usual. But the cvp they get for farming wont be from newly minted tokens it will be replaced by the cvp bought by the index. Totally cutting inflation which would hugely help cvp price.

And make it so that only those that stake x amount of cvp AND x amount of an index token can get these cvp rewards. That way they must contribute to tvl to get cvp rewards. Others who only stake just cvp by itself dont get will just get xCVP and no cvp rewards because they dont contribute to tvl.

Incentivizing people to contribute to tvl and cutting cvp inflation totally by staking programs

1 Like

However the original vision and intention of PowerPool team was to reward CVP/xCVP holders taking part in decision-making processes, so I think we should definitely keep and implement this idea.

But maybe CVP/xCVP holders could get some lesser portion from fees while CVP/xCVP holders who are also the index holders could get bigger portion of the fees - lets say 1/3 of fees to CVP/xCVP holders and 2/3 of fees to both CVP/xCVP and index holders.

1 Like

Absolutely, I kind of forgot the idea was to reward active voters so let’s incorporate that and additional cvp rewards for those that own index tokens as well together.

This will incentivise more governance participation, reduce inflation (since market bought cvp for both cases), as team says above they can create a smart contract that probably can distinguish non voters from voters.

Question arises, what about those that staked cvp for xCVP without buying index tokens and didnt participate in governance, should they get any cvp rewards? Probably not right?

Yes, that was what I understood by reading PowerPool Medium articles… that rewarded are only the active members of the community (i.e. taking part in the voting).

Talking to the team on discord on general channel just now, seems that distinguishing between voters and non voters in xCVP is not possible. Referencing 1inch and sushi that offer rewards to all stakers regardless

It will require a brand new solution that will distinguish those. That will take time, and then time to audit. So seems like right now to me allocating tokens to active voters who stake via xCVP wont work.

Sorry if dumb question or missing the point but what would be their rational to buy CVP then? Index boost or future xCVP staking would be the main driver for buying pressure of CVP imo.

I was also in the discord chat just now, still a bit confused on the voting system. I understand on chain vote are not the preferred route anymore due to gas fee, but what is the idea now? I would love to vote and get more involved in the project but it’s not crystal clear how / where I can do that at the moment

Since voters cant be distinguished from non voters i think we should just go the way sushi and 1inch have gone and leave active voting rewards for now. Those that stake cvp for xcvp should get a proportion of cvp bought by the index from treasury fees.

BUT I will add another condition that that they ALSO simultaneously must stake index tokens as well. If they dont stake index tokens they will not get cvp reward. This will create buy pressure and add tvl to the index at the same time.

Your other question, gas costs are soaring and on chain vote costs are not feasible. On chain vote so far is what we have used. But this friday apparently team will launch a snapshot system so we dont need to pay gas.

Ok looking forward to read more about the snapshot system. And yeah agree your suggested idea would be awesome for the TVL

Actually snapshot system is used by several defi projects. Yfi, and, sushi, rarible. It’s not real blockchain governance but team is working on a layer 2 governance system that will be cheap and on chain but for the immediate future snapshots are the only feasible way to go.

Yeap xCVP should be good for cvp inflation and tvl

you can read about snapshot voting here:


https://snapshot.page/

And what about the sole index holders (not holding any CVP), should not those get the portion of the fees as I mentioned in one of my post above (along with the picture)? Because in the line of the original vision the index holders should also get some fees rewards, 0,2% of swap fees exactly.

Hmm.

  1. Perhaps then a smaller cvp fee reward for those just holding the index token. Similar to ASSY basic

  2. A higher cvp reward for those that deposit xcvp AND hold index token similar to ASSY boosted

  3. Cannot deposit xcvp without staking index token too i.e must contribute to tvl.

  4. If they want to stake more cvp for xcvp they must also stake more index token.

So only difference to what is currently happening is that instead of mining new cvp the index buys existing tokens cutting inflation which is what we want.

1 Like

The fees only pure stakers get should only be for the fees generated by their particular index right? Not 0.2% from the entire treasury right?

I am not sure what was the original intention but according to the picture of the cashflow (see above), the index holder should get 0,2% of the relevant pool (swap) fees and pure CVP holders 0,1% of entry fee + 0,1% of exit fee + 0,1% of swap fee from all the pools, i.e. Treasury (so I assume)…

1 Like

I’ll change my position again, sorry. I can’t stay with one thing for more than a few hours!

But in all seriousness I’m gonna track back on my position.

I think that those who just stake only index tokens, should not be given fees from treasury.
I think only those that have xCVP (by depositing cvp) should be the only ones to get treasury rewards.

BUT you must stake index tokens already or at the same time, to join xCVP (i.e must contribute to tvl to get cvp rewards).

If someone stakes only their index tokens and not cvp, they shouldn’t get access to the treasury (which is actually governed by cvp holders). They should only get rights to index token appreciation and they will receive all staked cash flows (from aave etc). So index holders should not get treasury rewards in my view. They should invest into cvp token to get access to these rewards.

2 Likes