PowerAgent Automation Network

Smart contracts don't execute themselves

Value Proposition - PowerAgent Network
Competitive Analysis - Gelato Network
Non-EVM Automation Options

Introduction to On-chain Permissionless Automation

Almost every Defi protocol requires an agent external to the protocol to execute some transactions on-chain for its correct operation. Such transactions can be triggered by on-chain events or time conditions. Ethereum and other EVM blockchains do not offer any method for these contingent actions to be done automatically at the appropriate times from inside a smart contract.

Defi 1.0 protocols developed on Ethereum were designed to be supplemented by pseudo-anonymous agents (known as Keepers). Such agents perform event-triggered actions such as liquidating under-collateralized positions in MakerDAO/Compound/AAVE or re-aligning ever-changing prices across AMM pools via arbitrage. Autonomous agents acting as Keepers were a way to make DeFi 1.0 primitives robust and decentralized. Permissionless actions of such Keepers are generally triggered only by sufficient economic incentives (significant price differences, liquidation premiums, etc). They therefore typically extract disproportionate value from the protocols and their users.

The evolution of DeFi 2.0 and beyond will require even more autonomous automation to perform routine on-chain tasks not necessarily motivated by large incentives. We expect that Defi will demand ever broader automation solutions, dramatically expanding the role of Keepers towards becoming more generalized ‘Automation Agent Networks.’ Such networks will support the operation of the next-generation multi-chain composable DeFi protocols.

PowerPool’s PowerAgent Network

The PowerAgent Network is one of PowerPool’s key innovations, and is the leading EVM-compatible automation agent network. 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 autonomous on-chain automated network of Agents, and only PowerPool has one. PowerAgent 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 analogue to PowerAgent is Andre Cronje’s KP3R Network. Oracle networks like ChainLink, etc are not really competitors.

The PowerAgent network is unique to PowerPool, and necessary for efficient, diversified active management of DeFi yield:

  1. Harvesting rewards, maintaining yield-generation strategies
  2. Updating composition, weights, other variables throughout the Power Universe
  3. On-chain reallocation for products requiring constant redemption and minting new tokens (e.g. Yearn Lazy Ape)
  4. Retrieving necessary on-chain metrics for product operations - TWAPs, etc
  5. Paying regular dividends

Power Agent can automate any on-chain activity that PowerPool needs for active investment management.

PowerAgent 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 PowerAgent 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). PowerAgent uses Powerpool $CVP tokens for staking as ‘skin in the game’, and the autonomous automation network receives rewards and gas compensation for automating transactions reliably.

The PowerAgent 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 PowerAgent performance and slashing 10% of his stake for each case of misbehavior (this is their incentive for operation).

PowerAgent Network Tokenomics

{PowerAgent (originally PowerPoke) automatically executes on-chain maintenance operations such as TWAP prices, rebalancing AMM weights, processing batched transactions, and executing asset swaps for xCVP. PowerAgent is managed by two agents - Poker Agent and Fishermen. Each role is required to stake CVP as a deposit. The address with the largest deposit becomes the Poker Agent, while the rest become Fishermen. The Poker Agent is responsible for performing all of Power Poke’s on-chain operations, while the Fishermen are responsible for slashing the Poker Agent if there’s any failure. The Poker Agent and Fishermen are both rewarded for their work in CVP.

Competitive staking from which the top staker signs Txs, and he is rewarded in CVP (inflation rewards). Other stakers (who are not #1) watch the leader and can slash him by 10% of his stake (it is something like 38k CVP) if he does not sign tx on time

other stakers also receive rewards for being online, so they have rewards if there wouldn't be an opportunity to slash

In the future all dApps/users/protocols who use PowerAgent will pay for signed tx in a following way: gas_cost + %from gas costs, for example +10-15% so every new protocol using PowerAgent will benefit all xCVP stakers

Becoming a PowerAgent Node Operator