PowerPool has now launched an index coupled with a meta-governance token for the recently consolidated Yearn.finance ecosystem. PowerPool is a project that explores the utility of Ethereum-based governance tokens and has launched YETI to enable the ecosystem to run smoothly.
YETI was created by Messari’s Ryan Watkins. Ryan conceived the idea and published the proposal for a Yearn Finance ecosystem index token to the PowerPool governance forums on December 4.
The Messari researcher said that despite the available development and community resources being merged among different YFI ecosystem members, governance among the protocols remains separate.
He believes that 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.”
According to his proposition, the index is comprised of 35% YFI, 17% SUSHI, and 8% CREAM, AKRO, COVER, KP3R, CVP, and PICKLE. Nonetheless, the features that make up this index can be changed with successful governance proposals.
Reports reveal that this meta-governance layer to PowerPool’s index tokens enables the YETI holders to participate in governance across the entire Yearn ecosystem through a single interface. PowerPool explained that it simplifies the user experience and offers a chance to save gas costs.
YETI token holders can also turn into liquidity providers for any tokens in the index, and the process earn yields from the tokens pooled in the underlying protocol’s yield generating vaults. They also get proceeds from a 0.2% swap fee from the token swaps happening within the YETI pool.
Interestingly, Yield farmers who supply tokens to the YETI index can earn a share of 250,000 of the PowerPool native CVP tokens monthly for up to 10 weeks. On the other hand, 200,000 CVP have already been allocated to the liquidity providers for the Balancer’s YETI/ETH 80-20 pool.
YETI is today trading on decentralized exchanges Balancer and Uniswap for about $1.10.