The new partnership between PowerPool and YFI ecosystem is focused on governance use-cases. PowerPool announced the partnership as a new step toward more collaboration with DeFi platforms. Yearn.Finance, as one of the most famous DeFi platforms, can be a great choice in this path. The new partnership will integrate YFI governance into the PowerPool meta-governance system.
Integrating Governance Systems
Partnerships between blockchain platforms play a vital role in the growth speed of the whole industry. When platforms integrate their services, they expand their offerings to users. The final result will be more satisfied users who spend more time and money on blockchain platforms. DeFi services that target mainstream users to disrupt the old financial industry can leverage from the growing user-base very much.
The new collaboration between PowerPool and Yearn.Finance is about integrating the governance system. According to PowerPool blog post:
“PowerPool integrates PowerIndex with YFI governance system. PowerIndex is a decentralized ETF-like DeFi index, consisting of 8 different governance tokens (GTs), and YFI is one of them. One of the features of this index is the meta-governance function, applied to composite protocols.”
The meta-governance concept that PowerPool focuses on is about improving the governance processes in blockchain platforms. It pools tokens from holders into a single contract. The final aim is to delegate the voting rights to a social-based consensus. It will result in more collaboration and community-making activities in platforms.
The new partnership with PowerPool may have many results in the YFI ecosystem. There will a proxy token from now on in proposals that affect the voting process. PowerPool describes the coming changes in the voting mechanism:
“It means that YFI tokens inside the index contract will participate in voting on yearn.finance proposals based on decisions made by CVP token holders. All index LPs, providing governance tokens to the pool receiving the share of this inter-protocol voting power participating in the CVP liquidity mining program.”
PowerPool believes the new partnership with the YFI ecosystem has multiple benefits for the final users of Yearn.Finance. One of the most important claimed benefits focuses on swapping tokens that are pooled inside the index contract. PowePool says it will make it possible for YFI holders to swap other governance tokens to YFI and vice versa.
PowerPool and YFI team are currently working on multiple aspects of integration. The integration will happen in multiple steps and provide options for YFI community members.
If you found this article interesting, here you can find more DeFi News
