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Investing In PowerPool (CVP) – Everything You Need to Know

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PowerPool (CVP) provides automated DeFi services to the market. The protocol specializes in smart vaults and governance protocols. The developers seek to enable users to coordinate governance decisions for the projects held in the PowerPool’s indices and other Ethereum-based protocols.

What Problems Does PowerPool Attempt to Fix?

PowerPool was designed to reduce a few friction points in the DeFi market. For one, it provides asset securitization by enabling traders to have a say in the governance of the protocols they trade. This approach helps to ensure that the traders share the same goals as the projects they hold.

PowerPool (CVP) - Twitter

PowerPool (CVP) – Twitter

Trader Confusion

Another major issue that PowerPool helps to reduce is trader confusion. It can be hard for new traders to find reputable projects worth their time. Building a diversified portfolio can be nearly impossible for these users. PowerPool takes the guesswork out of the process and provides exposure to many of the top-performing DeFi protocols in the market today from a single asset.

Fees

The ability to gain exposure to multiple DeFi networks from a single asset is a crucial step in saving fees. In comparison, holding each token individually would require you to seek them out and secure each. These added steps also include more fees and delays. Users of the PowerPool indices save because there is only one asset to hold and secure.

Low Yield

Another major problem for DeFi users is low yields. With inflation at a 40-year high, it’s vital you put your savings to work for you. PowerPool introduces yield solutions optimized for distributed networks. The systems are automated to streamline the entire process. These systems enhance yield and improve capital efficiency for users.

Benefits of PowerPool

There are some key benefits that make PowerPool a smart alternative in the market. The protocol supports the automation of complex on-chain strategies. The developers have stated that they seek to deploy an automation network and products on every EVM-compatible chain in the future. These maneuvers would give the community accumulate governance power in the Ethereum ecosystem.

The main advantage of this strategy is that it creates a feedback loop for token holders. If they participate in the governance of their investments in a responsible manner, their returns will grow. If they don’t, there will be negative results felt throughout the community.

Earn Income

DeFi users can secure higher ROIs using PowerPool’s automated services. The system supports vaults and smart token baskets built on top of the Power Agent automation network. Notably, you can also secure returns by staking your CVP tokens. The network pays out 100% of these fees to xCVP stakers.

Staking is a popular DeFi feature for many reasons. Primarily, it takes the guesswork out of securing passive returns. You can use the networks staking calculator to see exactly what you will earn at the different participation levels. In this way, staking provides more consistent returns versus trading.

PowerPool Provides More Access

The structure of indices makes them ideal for traders seeking more exposure. In the future, PowerPool could venture into a variety of networks that may be unavailable to traders in different regions of the world. Through PowerPool, they can still secure returns from the market movements of these assets.

Modular Asset Management

The Modular Asset Management system of the network is another plus. The protocol supports the creation of complex automated products without coding. This strategy eliminates technical barriers and improves blockchain adoption. It also reduces the cost for businesses seeking to integrate blockchain solutions into their systems.

PowerPool (CVP) - Stichting Structure

PowerPool (CVP) – Stichting Structure

How Does PowerPool Work?

PowerPool leverages a variety of different protocols to create a secure and responsive user experience. The system is powered by Power Agent smart automation network. The protocol allows users to pool, lend, and borrow governance tokens in a permissionless manner. The platform charges a fee for swapping and depositing that is then split between rewards and the treasury.

Power Agent

The Power Agent protocol is a critical component of the PowerPool ecosystem. The mechanism is an open-source network that supports global transactions. This protocol can host the latest DeFi smart contracts and advanced automation as part of its main services.

Power Agent has been a major success operating on the Ethereum network for over a year. The developers seek multi-chain deployment of the protocol in the coming months. This maneuver would empower a new level of interoperability within the DeFi environment.

Become a Power Agent and Earn

Anyone can become a power agent simply by staking their CVP tokens. The enrollment is open and requires no KYC. You can secure returns for your participation. These passive returns get deposited directly in your wallet as CVP tokens. Consequently, Power Agents enjoy compounding returns.

Permanent Voting Power treasury

The Permanent Voting Power Treasury is where the fees accumulate for the network. The users decide how to spend these funds using the DAO voting system. The system requires users to stake CVP tokens to vote. The more tokens you stake, and the more weight your vote holds.

CVP Token - CoinGecko

CVP Token – CoinGecko

Token

CVP is the main governance token for the network. The token is an acronym for Concentrated Voting Power. Users need to hold CVP if they want to access any of the features of the network. Specifically, they can put forth proposals and vote on matters including token sets, token weights, and index fees. This system is responsible for governing all PowerUniverse offerings.

PIPT

PIPT is the first PowerIndex from PowerPool to hit the market. This unique digital asset includes 8 DeFi governance tokens. The token streamlines DeFi governance by putting the community in a position to leverage their weight on issues in all of the networks they hold.

Governance

The POWERPOOL DAO ensures that the network remains a community-driven project. Community governance mechanisms are standard on DeFi networks today. As such, PowerPool is well-positioned to exert influence on these networks moving forward.

History

The story of PowerPool officially begins in August 2020. At that time, the network entered the market as a meta-governance protocol. Since then, PowerPool has put forth 54 governance and product proposals.

How to Buy PowerPool (CVP)

Currently, PowerPool (CVP) is available for purchase on the following exchanges.

Binance – Best for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from purchasing most tokens. Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK.  USA & Canada residents are prohibited.

Huobi Global – Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion.  It should be noted that Huobi Global currently does not accept USA or Canadian residents.

PowerPool – Take Control of Your DeFi Investments

The PowerPool strategy is sure to raise eyebrows as it becomes more effective. There continues to be a drive to concentrate community efforts across the DeFi community. The PowerPool system provides token holders with a viable alternative to the status quo and puts them in the driver’s seat of some of the most reputable projects in the market.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

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