With the YETI token, indices land in decentralized finance (DeFi)
Power index launches its YETI token, bringing together 8 tokens from the Yearn Finance ecosystem. A way to gain exposure to decentralized finance (DeFi), to participate in farming and governance programs in one place.
What if we told you that it was possible to hold 8 tokens from the Yearn Finance ecosystem in one in order to benefit from their farming program and access their governance? This is what PowerIndex offers, via the YETI token .
Invest in the Yearn ecosystem using a single token: the YETI
The YETI does exist. But at the risk of disappointing you, this is not a monster, but an ERC20 token comprising 8 tokens from the Yearn ecosystem, distributed as follows: YFI 35%, SUSHI 17%, CREAM 8% , AKRO 8%, COVER 8%, K3PR 8%, CVP 8% and PICKLE 8%.
It is offered by PowerPool , which wants to enable token holders to lend, pool, borrow and earn income from governance tokens. All while accumulating the governance power of protocols based on the Ethereum network.
In early December, they formalized their partnership with Yearn Finance , by using an index based on the eight protocols: the e token YETI. This is an updated and audited Balancer fork created by PowerPool. This means that the token is not part of the Yearn ecosystem itself. #MoreDecentralization.
And yes, in case you didn’t know, the giant Yearn, who broke all price records this summer with his YFI token , is becoming a real boulevard of DeFi projects and is surrounding himself with brand partners.
As a reminder, here are the roles and functions of each protocol in the index:
Composition of the Yeti protocol
YFI: web3.0 fund management protocol
SUSHI: AMM-based liquidity provider, like Uniswap
CREAM: Credit market
AKRO: Business development, commitment of institutional actors
Cover: Assurance protocol for DeFi protocols
K3PR: Ecosystem maintenance protocol and incentive layer for developers
CVP: Meta-governance protocol and smart index provider (this is the PowerIndex token )
PICKLE: Supplier of efficient agricultural robots
Everyone has their own role. And to be exposed to each of them, it can quickly be expensive in gas . This is where the clues come in.
A powerful tool to diversify your portfolio
At the first level, YETI is a clue. It therefore allows exposure to many tokens , in a simplified and balanced way. This is for comparison with traditional finance. DeFi brings its share of innovations, beyond the decentralization that we know.
Among the opportunities offered by DeFi, let’s remember three:
Interaction with eight protocols without paying too much gas ;
Access to governance programs for each of the protocols;
Access to farming programs to collect rewards.
This is called metagovernance . In a single interface, the user can access all the functionalities of the DeFi protocols present in the index.
At the time of writing, PowerIndex offers a liquidity extraction program of up to 300% rewards in CVP, PowerIndex’s token – by blocking its YETI tokens, or providing liquidity.
To obtain its YETI, two options; buy it on Balancer , or from the PowerIndex site .
For Token Brice , specialist in DeFi, host of DeFi France and Bankless France, this novelty is very interesting for the ecosystem.
“With metagovernance, it is possible to vote in the protocols represented in the index, or generate a return on each of the tokens . It’s a kind of mega-participation made up of eight DeFi protocols thanks to a simple tool. “
Especially since each token present in the index really exists.