The majority of you know about the boom of different crypto indexes, ranging from crappy-shady money, grabs all the way to pretty nice concepts, like PieDAO. Today I want to talk about my favorite index and explain why I think it is The DeFi Index.
I was early LP in the PowerIndex by PowerPool, enjoying awesome APYs
But why did I chose them? Let’s see why the PowerIndex, indeed has the Power.
PowerUp №1: Index Fees
The Power Index has three types of fees:
entry fee: 0.1%
exit fee: 0.1%
and swap fee: 0.1%
One can say that 0.1% is nothing but think about arbitrageurs. AMMs are the bread and butter of DeFi, and due to the fixed shares of composing tokens, arbitrageurs always shit to do. Price fluctuations give a 100% probability of wide arbitrage windows.
Plus, if the community decides to change one token or change its composition, it can attract enormous waves of volume, allowing PIPT holders to ride these huge waves and get huge payouts.
PowerUp №2: Smart Mining
You say the LP reward is fixed, so the more people lock funds in the index and stake, the less reward and APY we have.
I say it’s wrong. Why?
Since the index has fixed shares, the bigger the index, the bigger the buying pressure on CVP. It will lead to a higher CVP price, leading to a higher reward.
Result? Your APY in dollars will stay high instead of plummeting to low double digits as it does in other projects.
PowerUp №3: Community Managed
DeF moves quickly. I mean, it moves fucking rapidly. How many paid subscriptions do you have? Delphi, Messary, The block, and tons of good substack newsletter.
You need tens of different information sources and deep technical expertise to decide where to allocate your capital.
Or you can rely on a community composed of investment bankers, developers, economists, token engineers, and more. These people actively manage the PowerIndex, giving you time to enjoy the profits from your investments.
Are you one of them? You can offer your skills and knowledge to the community and earn extra rewards. That’s a win-win in real life. Not in the management book.
Mega PowerUp: Meta-governance
Meta governance puts PowerIndex on new level.
I don’t want to give you any fancy theories or formulas. The bottom line is, if PowerIndex holds a significant percentage of the circulating supply of governance tokens, PowerIndex can influence the DeFi market at large.
And who decides how these tokens will vote? Easy — CVP holders.
Stay with me here.
People stake their governance tokens in the PowerIndex coz they have awesome APY from staking. Plus, they hold a balanced and community-managed index of best projects: less research, more time to spend your moneys.
Lot’s of different actors want to have a say in the governance of mentioned before projects, so they need to accumulate CVP to have this opportunity. They are boosting the demand and price of CVP.
The bottom line?
Buy PIPT or CVP, it’s up to you. But do it now.
My Twitter: https://twitter.com/PowerLul
