With the YETI token, the indices arrive in decentralised finance (DeFi)
Power index launches its YETI token, gathering 8 tokens from the Yearn Finance ecosystem. A way to get exposed to decentralised finance (DeFi), to participate in farming and governance programmes in one place.
With the YETI token, the clues to decentralised finance (DeFi) are there.
What if you were told that it was possible to hold 8 tokens of the Yearn Finance ecosystem in one in Crypto Code order to benefit from their farming programme and access their governance? This is what PowerIndex offers, via the YETI token.
Investing in the Yearn ecosystem using a single token: the YETI.
The YETI does exist. But at the risk of disappointing you, it is not a monster, but an ERC20 token gathering 8 tokens of 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 proposed by PowerPool, which wants to enable token holders to lend, pool, borrow and earn income from governance tokens. All this while accumulating the governance power of protocols based on the Ethereum network.
At the beginning of December, they formalised their partnership with Yearn Finance, offering an index based on the eight protocols: the YETI token. This is a Balancer fork updated and audited and 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 it, the Yearn giant, which broke all price records this summer with its YFI token, is becoming a real boulevard of DeFi projects and is surrounding itself with brand partners.
As a reminder, here are the roles and functions of each protocol of the index :
Composition of the Yeti protocol
- YFI: web3.0 fund management protocol
- SUSHI: AMM-based liquidity provider, such as Uniswap
- CREAM: Credit market
- AKRO: Business development, involvement of institutional actors
- Cover: Insurance protocol for DeFi protocols
- K3PR: Ecosystem maintenance protocol and incentive layer for developers
- CVP: Meta-Governance Protocol and Intelligent Index Provider (this is the PowerIndex token)
- PICKLE: Supplier of high-performance agricultural robots
Everyone has a role to play. And exposing yourself to each of them can quickly cost a lot of gas. That’s where the clues come in.
A powerful tool to diversify your portfolio
At the first level, YETI is an index. It therefore allows exposure to many tokens in a simplified and balanced way. This is for comparison with traditional finance. The DeFi brings its share of novelties, beyond the decentralisation we know about.
Among the opportunities offered by the DeFi, let’s retain three:
- Interaction with eight protocols without paying too much for gas;
- Access to the governance programmes of each of the protocols;
- Access to farming programmes to collect rewards.
This is called meta-governance. 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 programme to extract liquidity from up to 300% of the rewards in CVP, the PowerIndex token – by blocking its YETI tokens, or by providing liquidity.
To get your YETI, there are two options; buy it on Balancer, or from the PowerIndex website.
For Token Brice, a DeFi specialist and facilitator for DeFi France and Bankless France, this novelty is very interesting for the ecosystem.