DeFi Indexes for Chads

DeFi Indexes for Chads

By PowerLul | CryptoLul | 10 Dec 2020


It's been a long time since I've written something, but the recent YETI launch by the PowerPool made me write this one.

I've been closely monitoring Telegram and Discord and was blown away by the number of people wanting to buy YETI or asking is it a stable coin or not. I decided to create a short glossary for you guys.

Index Tokens

Now, PowerPol has two indexes, hence two tokens.

Power Index and it's token - PIPT (Power Index Pool Token).

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Yearn Ecosystem, and it's token - YETI (Yearn Ecosystem Token Index).

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Both these Indexes use the same tech - updated and audited fork of Balancer with the ability to accommodate 8 tokens. You can read my previous article to learn how AMMs work.

 

So, what are PIPT and YETI? It's a token representing a share in the Index. To mint new PIPT or YETI, you need to lock a basket of underlying assets. The lock ensures that your PIPT or YETI always has a fair price and always redeemable. 

 

Can PIPT/YETI price grow? When moon?

Yes, if the price of underlying assets grows, the price of the Index Token grows.

Plus, don't forget, f you use ETH (ERC20) option to mint the Index Token, a smart-contract buys you a basket of 8 tokens, creating a positive pressure on all compositing assets. So with the TVL growth, we might see the Index Token growth as well.

 

Is supply limited?

There is no "Hard Cap," but you can't mint an infinite number of PIPT/YETI, coz then you need an endless supply of underlying assets.  

 

How to earn more with YETI/PIPT?

You have two options. Stake tokens or provide liquidity to balancer and stake LP tokens - BPT (Balancer Pool Tokens) in our smart contract.

The first option is easier, but you earn a smaller APY compared to the Balancer option.

 

Yield Farming for PIPT

Yield Farming for YETI

 

What is vesting? What happens after 10 weeks?

Vesting is applied to rewards when you earn them. Only vested tokens are claimable.

DrGovernance a nice example in Discord:

Example: 

Today, you earned 70 tokens. They will linearly (gradually) vest (unlock) for 10 weeks. Every day you vest 1 token, but in reality, you vest a fraction every 15 seconds.

Tomorrow you earn another 70 tokens. They will gradually vest (unlock) for 10 weeks as well. 

So this process continues until you unstake your PIPT/YETI/LP tokens. In this case, you vest the rest of your tokens entirely in 10 weeks.

 

Do I need to keep my YETI in the pool for 10 weeks?

Nope, you can withdraw your Index Tokens or LP tokens at any given time.

 

Where to buy YETI/PIPT?

The advisable option is to mint them to get a better entry price (Buy cheaper tokens) by using the PowerIndex website.

Mint PIPT

Mint YETI

You can buy them from Balancer as well, but be aware of scams. On top of that, Balancer's price usually has a premium (Is HIGHER) since it's an easier option.

 

What is the difference between Approve and Infinity Approve?

Approve - gives permission to interact with a fixed number of tokens. A great option if you are NOT going to add more liquidity/stake more tokens.

Infinity Approve - permits interaction with a token as a whole. You can save gas fees by choosing this option. 

 

Should I use Lock or Confirm when depositing?

You need the confirm option.

 

What is the Lock function?

It removes permission to interact with your tokens. You can use this option if you used Infinity Approve before, and you are not going to do anything with your staked tokens for a while.

 

If you have other questions, plz comment here or DM me at @PowerLul.

 

 

 

 

 

 

 



CryptoLul
CryptoLul

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