Implementing the pivot to the New Vision programme will require a series of formal DAO Proposals for on-chain voting, some being new Proposals and some updates to existing Proposals, such as that for launching a BSCDEFI thematic pool. Below are drafts for a series of inter-related Proposals to be refined and posted on the Forum prior to being tabled for formal voting on the Governance platform. There is also a summary inventory of past/existing feedback and ideas, many of which are addressed in the New Vision proposals.
Upcoming Management Board Forum & Governance Proposals:
Proposal 39: BSCDEFI Launch - submitted for vote - approved
1. Proposal 39: Launch new thematic pool - BSCDEFI
It is proposed to update the composition and weighting of the previously-proposed (Proposal 30) BSC DeFi thematic pool, and launch in collaboration with Binance Smart Chain and Linear Finance. This update to Proposal 30 reflects modifications addressing the following constraints:
- Technical integration of CVP into the BSC official bridge took longer than expected;
- Our market makers required that the initial shortlist include only Binance (CEX) listed tokens;
- It became clear that two different BSC pools would fragment liquidity too much;
- The product will be more composable/hedge-able with synthetics/derivatives partners;
- The up-coming comprehensive New Vision roll-out gives new perspectives
Rewards offered for DeFi liquidity on BSC will have to be much higher to attract liquidity, and fees should be much lower.
With some centralisation of BSC also comes much better BSC marketing in gas fee-sensitive markets in Asia and use of the Binance BNB token to pay fees makes BSC effectively a (slightly) decentralised, distributed architecture extension to the Binance empire, with international fiat on/off-ramps.
The foregoing suggests that BSC DeFi could attract and sustain significant TVL/fees relative to the rate of rewards tokens issued. Recently, BSC has struggled with performance (some say the nodes will not scale) and security issues, as a plethora of hacks have exploited less-competent BSC cut-paste-fork initiatives. That said, mutual insurers like BSC-native Soteria are gaining traction and experiencing few claims as BSC DeFi investors become more aware of the difference between insurable and un-insurable protocols.
It is possible that Ethereum gas prices will never really be low enough for retail investors, and that liquidity will continue to flow back and forth across chains and layers like the tides. The Proposal is to launch a PowerPool BSC DeFi thematic pooled vehicle to give average retail investors gas-efficient, broadly-diversified exposure to BSC DeFi with rewards.
Proposed initial composition
The initial composition of the BSCDEFI pool was defined by the team and CVP community members, with advice from the Binance Smart Chain team and Wintermute (CVP market makers). This composition and weightings are just a starting point, as the DAO will be involved in periodically re-visiting both composition and weightings at regular intervals based on fundamentals tracking and flash-polling of sentiment changes among DAO members. Some of the considerations/filters applied in defining the initial shortlist include:
- Each project should meaningful TVL, user base, and history of operation;
- Binance (CEX) listing - a credential and aid to creating a hedge-able synthetic ‘mirror’ in collaboration with other protocols, may also hasten a CEX listing for the token;
- Token should be insurable either on Nexus Mutual or Soteria;
- Token should represent a thematic exposure primarily to the future advantages/disadvantages of DeFi on BSC
The proposed initial composition is presented below [will be written in text for Snapshot proposal]:
Note that there are at least 6 other BSC DeFi projects waiting to enter into consideration for non-zero weightings, mostly because they are not yet listed on Binance (CEX). As and when these zero-weighted candidates become listed, or when the Binance (CEX) listing requirement is relaxed, the weightings of these projects will be reviewed.
PowerPool has learned from launching previous products that it is important to act in concert with other DAOs, especially synthetics and derivatives sites, as well as lending sites, to maintain fungible composability of the pooled token. In the case of the BSCDEFI pool, we propose to collaborate with Linear, a BSC-native synthetics platform, to jointly launch composable ‘mirrored’ pool tokens, with PowerPool responsible for periodic DAO-driven maintenance of the composition and weighting.
Consistent with the New Vision, pool management fees will be initially set at 2%, with progressively automated rewards harvesting and no performance fee.
We propose to implement this product not as an AMM pool that allows traders to swap assets, but as a basket of assets without swaps for the following reasons:
- avoid IL associated with an AMM, the “selling winners and buying losers” problem;
- avoid security risks of hacks in particular protocols leading to draining the pool;
- the composition and weights of this kind of pool change relatively infrequently.
Given the need for a synthetic short for BSC product, it is much easier to track a static basket of assets with relatively-static weights than within the constantly rebalancing AMM pool. Therefore we recommend that technical implementation be done on top of the Balancer AMM pool with disabled joins, exits, and swaps. We propose to use this solution since our team has very good experience in building products on top of Balancer pools and it will save a lot of time on audits as well.
Users will be able to join and exit this pool (supply and withdraw liquidity) using ZAP (similarly to YLA ZAP implementation). Since ZAP and the product operates on BSC with much lower fees, ZAP can be designed to have batches for supply/withdrawal of assets much more frequently, for example, every 30 mins.
We propose the internal rebalancing mechanism based on the auction. When the pool will be rebalanced by periodic community flash polling resulting in a decreased weighting for token A, and increased weighting of tokens B and C, then the pool controller contract will call an auction for trading the necessary amount of A to B and C with a certain discount. If during time T nobody from the open market buys A for B and C, the discount increases by X%. We expect that such an approach will be more efficient for the pool capital than rebalancing by means of arbitrage traders. We are conducting simulations to prove that and will share results soon.
For running auctions, the system needs a reliable price feed. PowerPool has Power Oracle, a TWAP Uniswap/Sushiswap oracle, but we need an additional independent source of price feeds. We are talking with Chainlink now to establish a partnership and use Chainlink as the exclusive oracle provider for PowerPool, subject to DAO approval.
Synthetic hedging options
By agreement, Linear Finance, a synthetics/derivatives site native to BSC will be creating a synthetic token that will track the BSCDEFI basket of assets, thereby creating a shorting option for use in hedging the long-only pool. Currently, we are working with Linear on developing a technical roadmap for the synthetic derivative product. We may also approach other derivatives/synthetics platforms, like Synthetix, with whom we are already collaborating on the forthcoming PPDEFI Ethereum DeFi pool. Inter-DAO agreements of two protocols should encourage all others to use the same composition/weights to boost liquidity and composability.
We are hereby submitting a formal proposal to the DAO to launch a revised version of the already-approved BSC thematic pool as a Power Universe token BSCDEFI. The composition and weighting will be actively managed by the PowerPool DAO xCVP staker community. It will be a basket of assets without swaps and it be mirrored by an optional hedging instrument provided by Linear Finance. This product design will allow BSCDEFI token holders to create partly or completely hedged baskets in a flexible way, receiving yield and governance value provided by assets from the basket, either with or without long-term upside associated with a favorable competitive environment on BSC DeFi. We believe this will be the first structured investment pool offering diversified exposure to BSC DeFi, and definitely the first with composable ‘mirror’ tokens facilitating full or partial hedging.
Proposal 30: Indices for Binance Smart Chain ecosystem
Summary We propose to launch two indices on top of the Binance Smart chain based on PowerIndex v2 Dynamic AMM tech: BSCI (Binance Smart Chain index) - BSC native projects and blue chips Initial composition: Pancake, Venus, Bakery, Trust Wallet, Spartan, Autofarm, Alpaca, Helmet EBSCI (Emerging Binance Smart Chain index) - emerging projects in BSC ecosystem, some of them were extended their services to Binance from Ethereum Initial composition: Alpha Finance, Linear, Injective, UNIFI, R...
Proposal 40: New DAO Management Structure - submitted for vote - approved
Proposal 40: New DAO management structure, sub-teams & members
In conjunction with the New Vision implementation plan, it is proposed to replace the previous existing Management Board DAO structure with a new organisational structure composed of 9 (nine) distinct functional 'SparkTeams' each with a dedicated Discord channel and linked Wiki section to facilitate operations of each team. New Public Team members will be added to lead some of the SparkTeams composed of PowerPool DAO participants, supporting DAO teams’ operations with their efforts and expertise.
Taking into account the new vision and strategy for PowerPool, we believe that a functional structure of DAO member sub-teams led by full-time members of the Public Team will be more effective in implementing the multi-faceted tasks required to implement the New Vision. Implementation of this Proposal will effectively dissolve the existing Management Board structure.
The PowerPool Management Board was approved by the community Proposal 29. Once established, the Management Board made some valuable progress as reflected in the Management Board March 2021 report. The March 2021 report was the first one and only one, after which no further progress was made and no further reports prepared. The members of the Management Board were paid only the first month, 1/18 of 50k CVP for each person (roughly 2,777 CVP for each MB member). No further transfers from the DAO Treasury were made.
The Management Board has concluded that organising around functional sub teams and recruiting new full-time Public Team members to bring additional skills and experience is the best way to implement the New Vision. The proposed structure of the 9 functional sub-teams, coordinated by members of the Public team has already been discussed in detail with CVP community members involved in fully-defining the New Vision for PowerPool. The number of proposed new products, partnerships and investor contacts involved go far beyond just protocol code development. Most other DAOs involved in investment management/asset management are taking a similar approach to implementing functional sub-teams and moving some aspects of governance feedback and some types of frequent consultation/voting off-chain.
We propose to run PowerPool DAO operations by means of Public Team and 9 functional DAO teams. The Public team will include persons who have a track record in crypto DeFi, and other related fields with past contributions to PowerPool as a significant bonus. Public team members will be able to bring new skills and energy to work benefiting the PowerPool DAO new product development, cooperation with other protocols, marketing partnerships, legal & regulatory compliance, special task recruiting and other activities that require sustained personal and public engagement, collaboration, and experienced advice.
'Sparkies' (a slang term for electricians in England) is proposed as a collective reference to PowerPool investors/CVP token holders. The proposed 'SparkTeams' structure would be as follows:
SparkDev - Protocol & Agent Development: Responsible for all on-chain core protocol and agents development, security audits, and on-chain operations;
SparkFin - Treasury Management: Responsible for financial management of the DAO Treasury, calculating NAV, controlling expenses and collecting rewards to maximise the value for xCVP stakers;
SparkData - Reporting & Analytics: Responsible for sourcing, transforming and presenting all forms of data in support of active management of the pools in the Power Universe and periodic reporting to investors;
SparkDesign - Web UI & Social Media: Responsible for all aspects of online functionality, UI graphic design, interactions and usability;
SparkPeople - Recruiting & Tasks: Responsible for DAO Human Resources, guilds recruiting & skills tracking, incentivized task marketing, bounty management and tracking;
SparkProd - Product Strategies & Optimisation: Responsible for defining, developing, market testing and yield-optimising PowerPool-branded 'Power Universe' pipeline of thematic pooled structured investment products;
SparkDAO - Governance & Moderation: Responsible for Discord, Telegram, Notion Wiki, Forum and Governance platforms content, process, moderation and community relations;
SparkGrow - Marketing & Partnerships: Responsible for planning and execution of all approved marketing and distribution initiatives, targeting both retail and institutional investors;
SparkLegal - External Legal Advisors: Provide advice on legal structures and regulatory compliance issues.
New Public Team members
The following individuals are proposed to be added to the Public Team:
- Vasily Sumanov - an early supporter of PowerPool, contributed to the CVP token model and modeling of Balancer AMM pools. Active in submitting proposals that successfully passed governance voting (6 proposals in total) and guiding other community members to submit several others. Engaged in crypto since 2013 and the DeFi space since 2018, with several publications regarding token engineering, and successful Balancer grant completion (as a part of the Token Engineering team). In PowerPool, as part of SparkProd team, Vasily will lead research, simulation, and new products prototyping.
- Sergei Medvedev - more than 10 years in business development and marketing, ex-CBDO at Cointelegraph, highly experienced in scaling IT companies globally. Proven successful track record in APAC market expansion for tech and blockchain companies. Involved in the crypto market since 2016, DeFi early adopter. Now running a successful asset management company in Switzerland. Sergei’s focus for a couple years was making crypto more friendly and accessible for institutional and retail customers, with his guidance a lot of top-tier projects achieved favorable publicity, development and, as result, adoption. His non-profit activities with Rotary, UNICEF, Given Tuesday, Binance Charity also involve bringing crypto to the wider, non-crypto audience.
- Sven Möller - over 10 years experience in innovation and tech consulting. He worked as a Manager at Ernst & Young in the Finance - Performance Improvement Team. Co-founder of Swisscom Blockchain, dedicated subsidiary division of one of the biggest European telecom operators and solution providers. At Swisscom, Sven built crypto-related solutions for many Swiss banks and corporations. Currently, Sven is building a new, crypto-friendly payment solution in Lichtenstein, a successful asset management company with a strong algo trading approach and also involved with DeFi lending project Basic, based in Seoul Korea. He has a strong institutional investor background and network for building crypto projects involving with corporate-grade players to grow DeFi adoption through broad integration with institutional products and processes.
- Gordon Gekko - Chief Architect of the New Vision, he has several decades of experience with top strategy consultancies, including extensive experience consulting to institutional investment managers on strategy, organisation and operational processes. He has a Masters in Corporate Finance from MIT, and has also been involved as Founder in two software development start-ups involving global bond markets and big data analytics and visualisation publishing tools. Now a retired crypto investor managing a family office, he has spent the last months preparing the Notion Wiki as a collaboration and recruiting workspace for SparkTeams to implement the New Vision, filling the gap between tools like Discord and Telegram, and the Forum and Governance Platforms.
Building on the outline structure of the proposed 9 SparkTeams defined above, it is envisaged to recruit many more DAO members to each team to help with a wide range of tasks as outlined in the Notion Wiki. Interested? Anyone can request New Vision Wiki access from the link in the Discord, where there are dedicated channels for each team.
An investment management DAO like PowerPool requires a global team composed of many people and skills, not just Core Team protocol coders. The New Vision incorporates the spirit of many, if not most, of the Community proposals that have been posted on the Forum to date, and the above additions to the Public Team, combined with the proposed SparkTeams organisational structure, the DAO collaboration Wiki, and continued innovation in the Forum and Governance platforms, are all elements of the changes required to drive these initiatives through to implementation.
Proposal 44: DAO Operating Budget - submitted for vote - approved
Proposal 44: PowerPool DAO operating budget
Proposal 45: BSCDEFI - CVP for PancakeSwap Launch pool - approved
Proposal 46: Update composition of BSCDEFI - approved
Proposal 47: Updated CVP Liquidity Mining Rewards - Existing Pools - drafting
Proposal 4x: Launching Limited Edition of Redeemable xCVP NFTs - drafting
Proposal 4x: Launch POLYDEFI with Balancer - drafting
Proposal 4x: Launch PPSDEFI with Synthetix- drafting
Proposal 4x: Launch Ethereum DeFi Pool - PPSDEFI
Launch a new, more broadly-diversified and composable thematic “DeFi on Ethereum" pool replicating and tracking the composition of the existing Synthetix sDEFI synthetic product that tracks the 20 selected DeFi tokens synthetically without rewards or future meta-governance bonuses. By mirroring the composition and weights of the Synthetix sDEFI token, PowerPool PPDEFI pool investors will have flexible options to hedge (or not) against steep declines in the capital value of their broadly-diversified DeFi investment, while generating full rewards and future meta-governance bonus upside. Synthetix and PowerPool are ecosystem partners, and launching this and other similar products will be a win-win strategy for both protocols.
PowerPool has learned from launching previous products that it is important to act in concert with other DAOs, especially synthetics and derivatives sites, as well as lending sites, to maintain fungible composability of the pooled token. In the case of the proposed PPDEFI pool, we propose to collaborate with Synthetix, an L2 (Optimism) on Ethereum native synthetics platform, to jointly launch a pair of composable ‘mirrored’ pool tokens, beginning with an initial composition already defined by Synthetix for their existing sDEFI token, but subject to future collaborative reviews and a re-weighting process hopefully led by engaged members of the both DAOs.
Ethereum DeFI is an area that most crypto investors should have significant exposure to, but without sacrificing the likely future rewards and governance-related distributions major DeFi protocols with (for regulatory reasons) currently governance-only tokens (like Uniswap) mature. The proposed PPDEFI product will enable the average investor to gain broadly-diversified DeFi on Ethereum exposure, WITH rewards and WITH the additional option to reduce the downside capital risk all too evident in de-leveraging downturns like the one just experienced. For those investors already active on the Synthetix platform, pairing an investment in PPDEFI tokens with some level of investment in the corresponding inverse/short Synthetix tokens will accomplish any level of hedging protection. For investors who do not want to buy their own hedging protection on Synthetix, PowerPool could decide to also launch a neutral-yield version of the PPDEFI pool that includes inverse 'shorting' tokens to a level of say, about 80% of the NAV of the hedged pool, which will in any case grow continuously in value relative to the synthetic sDEFI token due to rewards and other distributions to token holders, like for example the planned Synthetix spinoff tokens to be distributed to SNX holders.
Launching a 'tracker' or 'mirror' copy of Synthetix sDEFI (to be called PPDEFI) containing the corresponding (yield-generating) real assets is judged the best starting option because:
- The composition has already been independently proposed and operated by a major, reputable entity, Synthetix DAO, and will be precisely calculated and maintained over time (typically 2-3 times per year) by Synthetix;
- Synthetix DAO decided to continue with their version of sDEFI (and not to mirror Index Coop's DPI), automatically creating an inverse/shorting option like iDEFI, the price of which always moves in the opposite direction from both sDEFI and PP-DEFI;
- The matching PPDEFI pool token can be easily and effectively hedged using the corresponding Synthetix iDEFI inverse/short token product, without any additional development by either side;
- Unlike the synthetic version, ‘real’ assets in the PPDEFI pool can be used for yield generation via staking and will receive distributions of future meta-governance rewards, but with the option to manage volatility risks by hedging the position;
- The Synthetix sDEFI product tends to be skewed long on their platfrom, and more use of the inverse/short iDEFI to hedge a ‘real’ PowerPool pooled vehicle will help keep the Synthetix book more balanced.
Launching and promoting the Synthetix sDEFI/iDEFI synthetic pair together with PPDEFI and easy onboarding via ZAP will facilitate usage of both tokens. The general availability of the sDEFI/PPDEFI twinned pair, with the iDEFI inverse/short synth also tradeable, will attract arbitrage bots/traders to both products, driving liquidity (and fees!). The availability of two equally-weighted Ethereum DeFi pools, with two independent managers, in both synthetic (with inverse for hedging) and ‘real’ rewards-eligible formats will also become a powerful argument to obtain the CEX listings key to massive retail inflows.
Proposed initial composition as determined by Synthetix:
- Uniswap/UNI - 12%
- Aave/AAVE - 11%
- Synthetix/SNX -10%
- MakerDAO/MKR - 10%
- Thorchain/RUNE - 10%
- Terra/LUNA - 5% (ERC20)
- Compound/COMP - 5%
- Sushi/SUSHI - 5%
- Yearn/YFI - 5%
- Bancor/BNT- 4%
- UMA/UMA - 4%
- 0x/ZRX - 4%
- Curve/CRV - 2.5%
- 1Inch/1INCH - 2.5%
- Ren/REN - 2.5%
- Balancer/BAL - 2%
- Alpha/ALPHA - 2%
- Kyber/KNC - 2%
- CREAM/CREAM - 1%
- Barnbridge/BARN -0.5%
We hope to work with Synthetix DAO on future re-weightings in the context of additional thematic Power Universe pools in the product planning pipeline. SparkTeams like SparkProd and SparkData will be involved in the process. Tokens like Terra/LUNA, Thorchain/RUNE, Ren/REN and 0x/ZRX may ultimately end up in other thematic pools. For more details on the currently envisioned Power Universe product pipeline, please request access to the Notion Wiki on Discord.
Like BSCDEFI, the proposed new PPDEFI product should be launched as a static basket of assets (for example, AMM pool without swaps, exits and joins). Because this is a tracker/mirror pool, it is necessary to avoid constant rebalancing that is inevitable in case of using an AMM (and dynamic AMM as well). The PP-DEFI product should precisely track performance and value appreciation of the synthetic DEFI to achieve goals mentioned above (an ability to create efficiently-hedged yield generating positions).
The proposed long-only PPDEFI unhedged product will exactly track the above list and weights, and should trade initially at the same price as sDEFI, but over time, as rewards and governance distributions accumulate, the PPDEFI pool should trade at a premium. One option will be to periodically (quarterly?) pay a ‘dividend’ to PPDEFI holders (in CVP) to return the value of the real pool to match the synthetic version. This will recall traditional equity markets where stocks trade at different values before and after dividends are declared.
Synthetic hedging options
Once the long-only version of the PPDEFI product is launched, and some investors are already providing their own hedging on Synthetix, PowerPool can agree with Synthetix the best way to manage an auto-hedged pool neutral-yield version of PPDEFI (PPDEFI-H?) where PowerPool mints a partially-hedged 80% in shorts/inverse tokens that are held in the auto-hedged pool, with Synthetix staking, minting and (unvested) rewards accruing to the PowerPool DAO Treasury. The fees on this auto-hedged pool will naturally be higher, as will the utility of the resulting auto-managed volatility, allowing the PPDEFI-H tokens to become widely acceptable as collateral, but with higher yields and more upside than stable coins.
Synthetix has indicated that they will soon deprecate the legacy shorting/inverse iToken model in favor of a new shorting/hedging paradigm, currently operating only for BTC & ETH. The change is to eliminate non-composable manual operations currently performed by Synthetix to maintain iTokens. Rather than integrate the existing iDEFI hedging option, it is proposed for PowerPool to launch PPDEFI as a long-only product even before the Synthetix hedging inverse/shorting option is live.
Proposal 4x: Options for PIPT, ASSY & YETI - drafting
Proposals Category Info
The proposal category is created to discuss PowerPool Improvement Proposals (PIPs) before launching them to on-chain voting. Basic rules: Begin the title of your thread with PIP and no number. A number will be assigned for on-chain voting. Use the community created template - Standardizing Proposals Structure 1 Include a poll to measure sentiment prior to on-chain voting.