Meta-DeFi protocols are becoming increasingly popular following the success of Yearn.finance. The project is essentially a yield farming hedge fund that lets people participate in complex strategies to farm the governance tokens, or GTs, of other protocols.
Yearn is just about business — it sells any tokens it obtains through its activity. But a new project wants to reverse that concept to focus completely on the governance power offered by these tokens. PowerPool is a meta-governance protocol project that seeks to concentrate governance tokens of all platforms under one roof. Developed by a group of anonymous developers, it is quickly gathering support in the business ecosystem, with firms like Delphi Digital entering a position. Other backers include Pantera Capital’s Paul Veradittakit, Multicoin Capital’s Kyle Samani, CoinShares’ chief security officer Meltem Demirors and other notable industry figures.
Additionally, OKEx exchange announced that it would list PowerPool’s CVP token among other new tokens like Sushi and YFV, with primarily China-focused exchanges following suit. Jay Hao, CEO of OKEx, told Cointelegraph that the decision was motivated by the exchange’s “commitment to furthering the development of the DeFi space,” which includes supporting “up-and-coming high-potential DeFi protocols.” He emphasized that OKEx is not an investor in the project, however.
Cointelegraph also spoke to one of the protocol’s anonymous developers, who goes by the pseudonym “Leeroy,” to learn more about why high-profile investors are showing interest in the project. Indeed, the protocol was designed to attract both major ecosystem players and minor token holders alike.
How does PowerPool work?
The protocol works in a similar way to existing lending protocols like Compound or Aave. Users who are uninterested in governance can stake the governance tokens they own, like COMP, LEND, YFI or MKR, which can then be borrowed by other people — for example…