0x6f6f5f08…2b00sent to0x88a6cee1…8f98·#11,321,695·0x31ef8635…dad2d3
Proposal 9: Launch of PowerIndex with Update to Vesting, Liquidity Mining & PowerIndex Design
Summary of proposal 9:
Please read the full proposal post additional information and rationale
https://gov.powerpool.finance/t/proposal-9-update-to-vesting-liquidity-mining-powerindex-design/412
The composition of the index will remain relatively unchanged in the transition, consisting of CVP, YFI, SNX, LEND, wNXM, UNI, COMP, and MKR. The only change will be AAVE replacing LEND now that Aave has gone through the token migration. Since the index remains unchanged, the 3M in CVP rewards will also no longer be rewarded for those who vote on the composition.
Liquidity Mining Program for the Power Index:
Month 1 rewards will be 1m CVP
Month 2 rewards will be 700k CVP
Month 3+ rewards will be 400k CVP
In general, 50% of rewards will vest immediately and 50% will vest over a 10 week period. In the early days, the vesting schedule will vary according to a conditional vesting parameter for PowerIndex rewards that’s based on total Index liquidity.
<$1,000,000 : 10% rewards immediately vest (90% 10 week vest)
From $1m to $5m: 20% immediately vest (80% 10 week vest)
From $5m to $10m: 35% immediately vest (65% 10 week vest)
From $10m: 50% immediately vest (50% 10 week vest, in line with most recent proposal)
The normal rule is that 50% of rewards vest immediately and 50% vest over a 10 week span. Once there is at least $10m of total liquidity in the index, this adjustment has no effect. This means the only difference is when the Index has less than $10m of liquidity.
Power Index LP’s can claim rewards by either directly depositing their PI LP token in the PowerPool app, or they can deposit it in an AMM with ETH and deposit that LP token on PowerPool. The AMM pool they deposit to will be an 80/20 PI/ETH pool. This will improve the efficiency of pool rewards, meaning Power Index holders will receive a higher yield. It’ll also allow users to be more targeted with their exposure.
Liquidity Mining Rewards for CVP/ETH Liquidity Pool
Rather than fractionalize liquidity across a variety of pools, the plan is to have all CVP liquidity mining rewards focused on the CVP/ETH Uniswap Pool.
Month 1 rewards will be 182k CVP (per week)
Month 2+ rewards will be 91k CVP (per week)
These rewards will come with a 10 week vesting period.