PowerIndex Grant Program for the AAVE Protocol

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governance.aave.com

TL;DR:

PowerPool proposes to include AAVE in PowerIndex, a decentralized DeFi ETF-like product, which would increase liquidity and help maintain AAVE's market price. Additionally, PowerPool has announced a grant program to foster community partnership and interaction, allocating 1% of CVP supply to each protocol elected as a PowerIndex member.

The discussion primarily revolves around the proposal by PowerPool to include AAVE as a participant in PowerIndex, a decentralized DeFi ETF-like product1. PowerIndex, which is currently in its MVP version, Baby PowerIndex, includes the LEND token and is composed of 8 governance tokens with a liquidity cap of $550k. The main PowerIndex, however, will be an uncapped audited version with its token set defined by community voting1.

PowerIndex is considered "smart" due to its unique features. It allows pooled tokens to be used for governance in composite protocols and for fund management strategies. Cashflows are distributed to token holders, and index LPs mine CVP as an additional income source. The community can govern the index, changing token set, weights of tokens, and pool fees via proposals1.

The inclusion of AAVE in the index would provide a stake in AAVE to end-users of the index by buying the index token PIPT. This would also contribute to solving the Voters’ Apathy problem as all pooled tokens are used by PowerPool (CVP) token holders for voting on proposals. Liquidity providers will receive additional cashflows by providing their governance tokens, such as AAVE, to the index. All LPs will earn CVP tokens for provided liquidity according to the CVP LM program1.

PowerPool has also announced a grant program for PowerIndex composite protocols and Protocol Politicians, approved by the CVP community in Proposal 6. The program aims to establish community partnership and engage community interaction. It plans to allocate 1% of CVP supply (1m CVP) to each protocol elected as a PowerIndex member in upcoming community voting1.

In response to Dappboy's query about the criteria for politicians and the technical changes required for AAVE to implement this, PowerPool clarified that the main requirement for a Protocol Politician is to be elected by the protocol’s community and that no major tech changes are required for AAVE4.

In conclusion, the discussion indicates a positive outlook towards the inclusion of AAVE in PowerIndex, which would boost its liquidity and help maintain AAVE's market price. The grant program announced by PowerPool also shows a commitment to community partnership and interaction1.

Posted 3 years ago

Last reply 3 years ago

Summary updated 2 months ago

Last updated 06/12 00:44