PowerPool has a Superior Asset Management Technology Platform
PowerPool works closely with Balancer, and the PowerPool DAO mission has inspired the design of Balancer v2 to better support active fund management.
One of PowerPool’s key innovations is Power Agent. On Ethereum, there is no way to hard code for an event to occur at a specific time, so harvesting rewards/yield and many other active management tasks requires an Agent, and only PowerPool has one. Power Agent is a system for automatic smart contract calls, allowing the protocols to harvest rewards, compound them, update pool weights, and make any other necessary on-chain activity automatically. The closest reference for Power Agent is Andre Cronje’s KP3R Network.
The Power Agent subsystem works as follows: Members of the CVP community stake CVP in a special (permissionless) contract, creating a Leaderboard. The address with the biggest stake becomes the Power Agent (principal transactions signer). Other addresses become monitors, known as Fisherman, constantly checking Power Agent performance and slashing 10% of his stake for each case of misbehavior (this is their incentive for operation).
Power Agent receives a set of tasks (for example - harvest rewards from Sushi staking, update pool weights according to some sort of strategy, get TWAP prices for selected tokens, update YLA composition every N days according to specified on-chain metrics, etc.). If Power Agent misses the transaction, another monitor (called Fishermen) can sign it instead, and slash 10% of his stake (5% is Fisherman’s profit, 5% goes to the Community pool). Power Agent uses CVP as ‘skin in the game’, and the network receives rewards and gas compensation for automating transactions reliably..
Power Agent is unique to PowerPool, and necessary for active investment management in crypto:
- Harvesting rewards, maintaining yield-generation strategies
- Updating composition, weights, other variables throughout the Power Universe
- On-chain reallocation for products requiring constant redemption and minting new tokens (e.g. Yearn Lazy Ape)
- Retrieving necessary on-chain metrics for product operations - TWAPs, etc
- Paying regular dividends
Power Agent can automate any on-chain activity that PowerPool needs for active investment management.