PowerPool announced a new partnership with the Sushi ecosystem. The partnership has benefits for both DeFi players and results in better services for users. PowerPool and Sushi try to merge forces in managing the YETI index that helps users benefit from Yearn features.
The new partnership with Sushi helps PowerPool to provide the YETI index in 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. CVP token is a necessary element for providing voting rights for YETI holders and establishing alignment of incentives in meta-governance.”
Sushi is considered one of the most prominent players in the DeFi ecosystem that provides decentralized exchange services. Their YETI index is one of the most useful tools to invest 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 for the Sushi ecosystem in the latest partnership with PowerPool.
According to the article by PowerPool, Sushi users will find access to many new services after this partnership. The meta-governance service by PowerPool is one of the most important services that will help Sushi users participate easier in the governance processes.
The recent partnership will provide smart liquidity for Sushi users. It somehow decreases the risks of price volatility, too. According to the announcement:
“YETI index stores all pooled tokens on the special contract and supports the price of underlying assets in case of their price decrease against other YETI composite protocols. It means that if the Sushi price goes down, the index will pool more Sushi from the market based on arbitrage (more Sushi are required to maintain Sushi share inside YETI AMM pool). So, YETI acts as a smart liquidity sink for Sushi tokens.”
Implementing meta-governance features on Sushi has two stages. The final result is the ability to use the YETI index for applying the meta-governance concept to composite protocols and using pooled tokens for participation in voting.
In the first stage, the YETI index stakes the Sushi token in Sushi Bar, and the earned income will be distributed among YETI holders. PowerPool says the process is similar to their integration with YFI. Staking Sushi in Sushi Bar creates a new token named xSushi. PowerPool plans to suggest this token to the Sushi community to add voting rights to it. It helps users receive rewards by using Sushi Bar and also have voting rights.
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