A few weeks ago, I covered PowerPool’s PowerIndex (PIPT), a new DeFi index with 8 underlying governance tokens: YFI, AAVE, UNI, SNX, COMP, MKR, WNXM, and CVP.
Interestingly, PowerPool just launched another new DeFi index focused on the Yearn ecosystem called YETI, short for Yearn Ecosystem Token Index, including the tokens: YFI, SUSHI, CREAM, AKRO, COVER, K3PR, CVP, PICKLE. YETI’s price depends on the price of these 8 tokens. The fixed weights of the tokens are:
35% YFI
17% SUSHI
8% CREAM
8% AKRO
8% COVER
8% K3PR
8% CVP
8% PICKLE
Like PIPT, here’s what makes YETI special vs simply holding a basket of tokens:
- You own future cashflows. The YETI contract uses pooled tokens for generating cashflows for index users. Each token will be utilized in a vault strategy for earning yield.
- You can influence the markets of 8 governance tokens holding YETI. By owning YETI, you can participate in index governance. A YETI holder could also eventually vote to change the token set, token weights, and index fees via proposals since YETI holds CVP, the governance token of PowerPool.
- You can participate in the governance of 8 protocols holding YETI. Imagine you’ve held and staked YETI on PowerPool and then you go to SushiSwap’s governance module and you can still vote with the 17% of SUSHI voting power that is imparted to you by holding YETI.
- In the future, you’ll be able to short a portfolio of 8 tokens using derivatives based on YETI. This is still in development.
New YETI Liquidity Mining Program
PowerPool recently launched a liquidity mining program for YETI where you can earn rewards one of 2 ways with a 10-week linear vesting schedule for the earned CVP.
1 – Provide liquidity to the 80/20 YETI/WETH Balancer LP and stake the LP in PowerPool (earning 374% APY)
2 – Hold YETI and stake it in PowerPool (earning 342% APY)
In order to participate in the last yield farming option (Deposit YETI and Earn CVP), one must first acquire the YETI token.
- If I’m working with less liquidity, I could easily swap for YETI on Balancer. The token contact address is: 0xb4bebD34f6DaaFd808f73De0d10235a92Fbb6c3D
- Go to Balancer and paste in the address 0x token address above to set up a swap for YETI
Alternatively, I could choose to mint the YETI token using one of the 3 options below under the Supply tab for the YETI dashboard here.
- ETH (ERC20): Mint YETI using ETH, USDC, DPI, DAI, or WBTC and your tokens will be automatically swapped to 8 different pool components via Uniswap V2
- Single Asset: Mint YETI by adding a single pool token and you will receive the YETI as a share (likely to incur the most slippage)
- Multi Assets: Mint YETI by adding liquidity with all 8 of underlying pool tokens (ideal if one has all 8 tokens and needs such a large amount of YETI where they’d be severely impacted by slippage trading in the $2.4M of liquidity for YETI/WETH on Balancer)
Earning CVP by Staking YETI or YETI/WETH LP
The final steps to earn CVP are simpler depending on whether one prefers to just stake YETI for an estimated 342% APY or provide liquidity to the YETI/WETH 80/20 Balancer pool for 375% APY. (Note these APY numbers change constantly with updated market prices of CVP and updated liquidity staking volume.)
- Go to PowerIndex.io
- Click on the YETI option on the right
- Click the Harvest tab
- If you…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
