PowerPool is updating its vision and development roadmap towards a DAO-managed family of crypto investment pools offering actively-managed, rewards-rich, multi-chain 'menu' of pooled investment tokens, (the Power Universe) easily blended by average investors.
Although PowerPool has achieved a lot, its marketing has failed to package the present and future capabilities of the PowerPool protocol technology in a way that makes sense to either experienced crypto, or particularly inexperienced, but high-net-worth (HNW) TradFi/Institutional family office investors, and especially professional investors like hedge funds. This full “New Vision” is a complete and detailed business plan spread through-out this Wiki, which has broad implications.
In summary it proposes:
- Cease (incorrectly) using the English term ‘index’ to describe pooled investment vehicles/products, forever! Substitute instead terms like ‘(dynamically) weighted token shortlist’, ‘pooled investment vehicle’, ‘fund’ or just ‘token’. Our passive management competitors are fixed on the term 'index', so using the term 'pool' serves to differentiate active from passive management. Some competing crypto structured investment pool managers refer to their products as ‘baskets’ or ‘pies’;
- Clearly communicate the PowerPool value proposition to the market: achieve actively-managed broad thematic diversification with rewards-rich and hedge-able pooled positions sharing insights and gas fees with thousands of crypto-savvy fellow investors, the 'Illuminati';
- The Powerpool DAO’s mission is to curate shortlists of tokens held in various pooled vehicles, and also the DAO Treasury itself; with dynamic (re-)weighting Proposals approved/declined by the DAO via staked xCVP (quadratic) voting majorities regarding product launches, listings/de-listings and re-weightings with 1-week time delayed reporting;
- Each shortlist/pool corresponds to one of three types of generic structured investment strategies; long/bull (currently duplicative, Ethereum-only non-composable legacy pools like PIPT, ASSY & YETI, auto-managed market neutral/high yield pools YLA(Yearn Lazy Ape) was the first product of this kind, and defensive/hedged/short/bear (currently nothing offered) - all comprising the Power Universe, actively managed by the PowerIndex protocol fundamentals-based dynamic weighting, soon to be modulated/overseen by directional flash polling, gasless off-chain sentiment collective input from the DAO;
- There is no point unilaterally launching more Eth DeFi products like PIPT, ASSY or YETI, which divide liquidity across the same theme and should be deprecated/transformed over time as they are duplicative (all Ethereum DeFi long-only) and non-composable from the perspective of the typical investor. They should be supplemented and eventually replaced with a new 'pool of pool' higher-level 'fund of funds' like $DEFIPOOL, and eventually a flagship $PWRPOOL 'fund of funds of funds' (see Relaunching Legacy Pools) spanning more themes with more composable DeFi tokens followed by other thematic pool products (see Power Universe Pipeline)
- Position CVP/xCVP and 'pool of pool' tokens like $DEFIPOOL within the overall crypto market as defensively-managed ‘Swiss Francs’ of crypto, managed to reduce volatility and tied via staked xCVP to a share of the Net Asset Value (NAV) of the DAO. Broad listings across many DeFi sites and relatively lower volatility will encourage arbitrage volumes and use pooled tokens as collateral for borrowing, also offering attractive (incentivized) LP opportunities with reduced risk of IL;
- CVP/xCVP will accrue value not only via fees, but also from returns from governance front-running, bear/defensive and neutral yield strategies executed by the DAO Treasury (hopefully) growing NAV, and driving the prices of the CVP/xCVP token pair upwards. (see Tokenomics, DAO Treasury & Reporting);
- Co-develop state-of-the-art, scalable Wiki, Forum and DAO governance coordination tools (starting with this DAO coordination Wiki), and by adapting some combination of open source (Discourse, Boardroom and Snapshot) platforms with additional features like restricted access to qualified wallets with minimum amount of xCVP/NFTs, gasless, offchain flash polls with quadratic voting, forced-ranking shortlist management, time-delayed result reporting, etc. (see DAO Rules & Governance);
- Source data feeds/analytics tracking key fundamental metrics (only for shortlisted tokens of interest) with purchased feeds for cumulative time series, predictive analytics and decision-support visualisations accessible to DAO ‘club’ members, i.e. stakers holding minimum xCVP in wallet. (see Data Sourcing, Tracking and Analysis);
- Overall marketing campaign focus: pain points and clear value proposition: Pain point for retail investors: Access to broadly-diversified, reward-rich and composable/hedge-able DeFi investment is too restricted and expensive in terms of gas and performance fees for average investors on Ethereum The Power Universe value-add advantage is clear: All competitors including current market leader DPI tout only passive management (for which crypto is too volatile) vs Power Universe ACTIVE management. The competition is also WITHOUT rewards harvesting for the token holder, which is the primary reason to invest in (hedged) DeFi in the first place! (vs PP active management WITH rewards). Pain point for institutional investors: Maintaining diversification WITH hedging, costly and time intensive monitoring, reporting, meta-governance battles, all needing to be shared with many other fund managers. Competing diversified pools are NOT composable or hedgeable (vs PP+mirror partner hedgeable). Publicise this vision and value proposition using popular social media memes like ‘If Gordon Gekko did crypto’, ‘CVP~=CHF’, ‘The Illuminati’ & ‘Sparkies’ to drive interest to this Wiki and drive DAO/Investor recruiting. (see Memes & Infographics);
- Make sure everyone understands the legal implications of not applying KYC and non-inclusive, discriminatory Accredited Investor barriers (see legal advice); also the best way to market PowerPool to TradFi investors given legal constraints and options;
- Once the new website and broad, thematic product family have been established, add a fiat gateway, free trading between CVP and multi-chain family of pooled vehicles, including deprecated legacy ‘index’ products, and integrations with retail investor aggregation sites like Zapper, Zerion, CoinGecko, as well as leading mobile wallet providers, etc.
- Seek participation/partnerships with TradFi hedge funds and family offices looking to accelerate their entrance into crypto vehicles on behalf of their own clients
Hedge Funds Expected to Increase Crypto Holdings Over Next 5 Years
Bitcoin and Dogecoin are both top 10 coins. Image: Shutterstock. In brief Hedge funds prepare to invest in digital assets in coming years, according to a recent survey. This shift also comes with a host of new challenges specific to this asset class, notably custodianship.