PowerPool launches ‘meta-governance token’ for Yearn ecosystem

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Powerpool has launched an index and meta-governance token for the recently consolidated Yearn.finance ecosystem.

PowerPool, a project exploring the utility of Ethereum-based governance tokens, has launched YETI — an index and “meta-governance” token for the Yearn.finance ecosystem.

YETI was conceived by Messari’s Ryan Watkins, who published the proposal for a Yearn Finance ecosystem index token to PowerPool’s governance forums on Dec. 4.

The Messari researcher noted that “despite development and community resources being merged” among the YFI ecosystem members, “governance among these protocols remains separate.”

He wrote the index would offer investors “a passive vehicle for board exposure to the Yearn ecosystem,” while providing Yearn an opportunity to formalize its recent mergers, and align “the treasuries and governance systems of the protocols in its ecosystem.”

As he proposed, the index is comprised of 35% YFI, 17% SUSHI, and 8% CREAM, AKRO, COVER, KP3R, CVP, and PICKLE. However, the composition of the index can be changed with successful governance proposals.

The meta-governance layer to PowerPool’s index tokens allows YETI holders to participate in governance across the Yearn ecosystem via a single interface, which PowerPool said simplifies the user experience and provides “an opportunity to save gas costs.”

YETI token holders can also become liquidity providers for any tokens in the index and earn yields from tokens pooled in the underlying protocol’s yield generating vaults. They also receive proceeds from a 0.2% swap fee from token swaps occurring within the YETI pool.

Yield farmers supplying tokens to the YETI index will able to earn a share of 250,000 of PowerPool’s native CVP tokens monthly over 10-weeks, while 200,000 CVP have o been allocated for liquidity providers for Balancer’s YETI/ETH 80-20 pool.

YETI is currently trading on decentralized exchanges Uniswap and Balancer for roughly $1.10 each.

Source: , CoinTelegraph

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