PowerPool partners with the SushiSwap ecosystem
PowerPool announced a new partnership with the SushiSwap ecosystem. The association has benefits for the players of DeFi and results in better services for users. PowerPool and Sushi are trying to join forces in managing the YETI index that helps users benefit from Yearn's features.
The new partnership with Sushi helps PowerPool provide the YETI index on its platform. According to the announcement:
“YETI is the second smart index in the PowerPool ecosystem consisting of Yearn ecosystem projects and CVP as a Yearn ecosystem partner. The CVP token is a necessary element to provide voting rights to YETI holders and establish an incentive alignment in meta-governance.
Sushi is considered one of the most prominent players in the DeFi ecosystem that provides decentralized exchange services. Your YETI index is one of the most useful tools for investing in the Yearn ecosystem. There are eight tokens in this index, including YFI, SUSHI, CREAM, AKRO, COVER, K3PR, CVP, and PICKLE.
There are multiple benefits to the Sushi ecosystem in the latest partnership with PowerPool.
According to the PowerPool article, Sushi users will find access to many new services after this partnership. The PowerPool meta-governance service is one of the most important services that will help Sushi users to more easily participate in governance processes.
The recent partnership will provide smart liquidity to Sushi users. Somehow it also reduces the risks of price volatility. According to the announcement:
“The YETI index stores all the tokens pooled in the special contract and supports the price of the underlying assets in case their price decreases against other YETI compound protocols. It means that if the price of sushi falls, the index will group more sushi from the market according to arbitrage (more sushi is required to maintain the sushi share within the YETI AMM group). So, YETI acts as a smart liquidity sink for sushi tokens.
The implementation of meta-governance features in Sushi has two stages. The end result is the ability to use the YETI index to apply the concept of meta-governance to composite protocols and use pooled tokens to participate in voting.
In the first stage, the YETI index bets the Sushi token on Sushi Bar, and the proceeds will be distributed among the YETI holders. PowerPool says the process is similar to its integration with YFI. Staking Sushi in Sushi Bar creates a new tab called xSushi. PowerPool plans to suggest this token to the Sushi community to add voting rights to it. It helps users to receive rewards when using Sushi Bar and they also have the right to vote.
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