PowerPool debuts ‘meta-governance token’ for Yearn ecosystem. PowerPool, a project exploring the functionality of Ethereum-based governance tokens, has released YETI, an index and “meta-governance” token for the Yearn.finance ecosystem.
YETI was established 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 detailed 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 enables 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 may also become liquidity providers for any token in the index and gain yields from tokens pooled in the underlying protocol tokens. They also earn profits from a 0.2 per cent swap premium from token swaps in the YETI pool.
Yield farmers supplying tokens to the YETI index will be able to earn a share of 250,000 of PowerPool’s native CVP tokens monthly over 10 weeks, while 200,000 CVP have been allocated for liquidity providers for Balancer’s YETI/ETH 80-20 pool. YETI is currently trading on Uniswap and Balancer decentralized exchanges for roughly $1.10 each.