As the demand for automatic execution of on-chain actions grows, the need for AI agents to assist users in defining their on-chain flows has become crucial. Meeting this industry demand requires a physical infrastructure of Keeper nodes connected to a blockchain RPC, which sign transactions based on both on-chain and off-chain conditions. PowerPool addresses this need by developing a robust dePIN infrastructure, providing Transaction Signing as a Service for end-users, protocols, and AI agents. This ensures seamless and efficient execution of complex on-chain operations, enhancing the overall user experience in the blockchain ecosystem.

What is PowerPool (CVP)?

PowerPool pioneered the concept of meta-governance in August 2020, focusing on accumulating governance power within the decentralized finance space. This vision laid the groundwork for building a protocol aimed at leveraging community decisions and major supporters like Delphi Digital. The initial phase involved developing automated DeFi products such as smart token baskets and vaults.

In July 2020, PowerPool introduced the idea of meta-governance, which allowed the accumulation of voting power across various protocols and its management via proxy tokens. By August 2020, foundational concepts were published, leading to support and recognition, including a Polygon (Matic) grant. PowerPool’s launch bypassed traditional VCs, relying on a classic liquidity mining approach to distribute tokens to LPs and notable DeFi community members. Testing on the xDAI (Gnosis Chain) and Matic (Polygon) networks soon followed.

By September and October 2020, the meta-governance idea gained traction, attracting interest from Cointelegraph. The team was interviewed, and the first governance proposals were published. Delphi Digital’s proposal led to the development of smart token baskets, transitioning PowerPool’s vision towards creating ‘Power Indices.’ This new direction introduced the need for on-chain automation, culminating in the launch of PowerAgent (formerly Power Oracle) to manage transactions and contracts.

The PowerIndex (PIPT) launched in November 2020 with a $17M TVL, followed by the introduction of the YETI (Yearn Ecosystem Token Index). PowerPool’s innovative asset manager concept gained recognition in various industry publications, including Messari and Bankless. Early 2021 saw further development with the ASSY (AAVE SUSHI SNX YFI) index and the Yearn Lazy Ape (YLA), both requiring on-chain automation.

Throughout 2021, PowerPool evolved its automation network infrastructure, leading to the development of PowerAgent v2 by mid-2022. The protocol’s shift towards a permissionless and decentralized automation network culminated in the launch and testing of PowerAgent v2 in October 2022, powered by the RanDAO algorithm for random keeper selection.

By 2023, PowerPool deprecated older products to focus on PowerAgent v2, launching inner testnets on Goerli and incentivized testnets on Sepolia. Partnerships with DappNode and deBridge facilitated cross-chain expansion and integration with multiple EVM chains. The PowerAgent v2 Bug Bounty Program and Builder Grants further supported this growth.

In 2024, PowerPool aims to expand its network across Ethereum, Gnosis, Arbitrum, Base, and Polygon, integrate new EVM-compatible chains, and enhance its cryptoeconomic model based on analytical data. New features, such as ZK-powered off-chain computations and community-curated job templates, will be added. PowerPool will also grow its developer and user communities through grants, hackathons, partnerships, and educational initiatives, ensuring continued innovation and leadership in DeFi automation.

How Does PowerPool Work? Architecture and DePIN Layer

PowerPool is a cutting-edge protocol designed to develop and operate a decentralized and permissionless Keepers network known as PowerAgent V2. This network enables DeFi automation and empowers AI Agents by providing reliable and cost-effective transaction automation. Acting as a “Transaction Execution as a Service” tool, PowerAgent V2 allows AI Agents, users, protocols, and DAOs to streamline their execution processes, facilitating autonomous trigger-based transactions on both on-chain and off-chain data with zero-code user strategies.

The architecture of PowerPool revolves around three main components: The Agent, The Job, and The Keeper(s). These components work together seamlessly to ensure efficient and reliable transaction execution. The PowerAgent dePIN network comprises on-chain elements, such as the PPAgentV2 contract and Job contracts, and off-chain elements, including dedicated user machines running the Keeper software.

At the core of this architecture is The Agent, the primary contract within the PowerAgent network. The Agent stores information about all Keepers and Jobs, manages interactions related to stakes, Jobs, and rewards, and processes transaction executions initiated by Keepers. The Agent’s responsibilities include calculating rewards, processing slashing for negligent Keepers, and relaying execution calls to target contracts.

Jobs in the PowerAgent network are represented by binary information stored in The Agent, specifying the contract to execute and the conditions under which execution should occur. Jobs can be configured with various parameters, such as minimal CVP stake requirements for Keepers to be eligible for execution. Once a Job is submitted, it is monitored by Keepers, bots running on dedicated nodes.

Keepers play a crucial role in the PowerAgent network. They are responsible for monitoring Job execution conditions and calling The Agent to execute transactions when conditions are met. Keepers are registered in The Agent contract and must stake a minimum amount of CVP to participate. They can be activated or deactivated as needed, and their performance is managed through a system of rewards and slashing to ensure reliability and prevent malicious behavior.

The execution process involves three main steps. First, a smart contract with time-based or logic-based execution conditions is deployed. The Job is then added to the PowerAgent contract, with native tokens deposited for payment. Next, the PowerAgent network randomly assigns a Keeper for execution, based on the specified stake range, which influences the number of available Keepers and the execution price. Finally, the assigned Keeper executes the Job, receives payment, and the process repeats with a new Keeper.

Source: docs.powerpool.finance

PowerPool’s architecture, centered around The Agent, Jobs, and Keepers, ensures robust and decentralized transaction automation. This system is essential for efficiently operating DeFi protocols and AI Agents, enabling seamless and reliable execution of on-chain and off-chain tasks. The next focus will be on the DePIN layer, which enhances the network’s decentralization and performance by integrating physical nodes and advanced cryptographic protocols.

DePIN Layer

The DePIN (Decentralized Physical Infrastructure Network) layer in PowerPool abstracts the necessity for manual transaction execution by utilizing a decentralized and permissionless Keepers network. This layer is designed to execute AI-generated and user-submitted flows, intents, and yield strategies seamlessly. AI Agents, which operate off-chain, cannot execute transactions themselves. Therefore, they rely on the PowerAgent V2 network to retrieve and implement their decisions on-chain, bridging the gap between AI decision-making and blockchain transactions.

The PowerAgent V2 network collects AI decisions through API calls and dynamically initiates job execution, providing a reliable and cost-effective tool for converting AI decisions into on-chain state updates. This integration unlocks significant opportunities for the Web3 AI sector, enabling AI protocols to automate complex tasks without manual intervention. The dePIN layer thus serves as an essential infrastructure component, facilitating seamless interactions between AI Agents and the blockchain.

PowerPool’s dePIN layer offers a valuable proposition to Web3 AI protocols, DeFi users, and blockchain node runners/validators. By offering Transaction Execution as a Service, PowerPool abstracts the complexity of scheduled and automated transactions, eliminating the need for users and protocols to run their own bots. This allows for automating various on-chain actions, ranging from simple routine tasks to complex fund management strategies, without requiring dedicated infrastructure.

Blockchain validators and full node runners can integrate PowerPool Keeper bots into their setups, adding a new income source. By running a PowerAgent node client, these nodes execute transactions based on PowerAgent network assignments and earn execution fees and gas compensation in the native blockchain asset (such as ETH for Ethereum). Keeper nodes must stake $CVP, the PowerPool protocol token, to qualify for task execution, ensuring honest behavior through a security deposit that can be slashed in case of malicious actions or failed task execution.

In the coming years, decentralized physical infrastructure networks like PowerAgent are expected to handle an increasing number of transactions on behalf of users, reducing the need for manual actions. This shift is driven by the rising number of automated flows and intent-based strategies generated by users, AI agents, and protocols, simplifying Web3 and DeFi usage for a broader audience. As a result, dePIN networks offering Transaction as a Service will likely become the dominant consumers of blockchain space, accounting for a significant portion of transactions.

Source: powerpool.finance

PowerPool’s dePIN layer, with its robust infrastructure of Keeper bots, empowers AI Agents and enables DeFi automation. It provides reliable and cost-effective transaction automation, supporting interval-based flows and complex resolver flows based on on-chain and off-chain logic. The protocol is chain agnostic, capable of launching on any EVM-compatible chain, including various rollups, Bitcoin L2s, L3s, and parallelized EVM chains. Currently, PowerPool is deployed on Ethereum, Arbitrum, Gnosis, Polygon, and Sepolia testnet, with more chains to follow, supporting Account Abstraction (AA) and integration with Gnosis Safe by Partitura.

PowerPool Use Cases

PowerPool’s versatile capabilities offer significant advantages in automating various DeFi and Web3 tasks. The PowerAgent dePIN network of Keeper nodes is designed to simplify and enhance on-chain and off-chain operations, ensuring reliable and efficient execution. Here are four primary use cases:

• Automated Fund Management: DeFi provides numerous opportunities to earn yields through staking tokens in various products such as protocol fee distributions, farming, options, and lending markets. These opportunities should ideally operate automatically, allowing users to deposit their tokens and receive income seamlessly. PowerAgent is the perfect tool to automate such strategies, ensuring that users maximize their returns without constant manual intervention.
• Limit Orders: Users often want to buy tokens when they reach a specific price. This process should be automatic and guarantee execution at the desired price. PowerAgent can efficiently handle limit orders, ensuring that transactions are executed precisely when the set conditions are met. This automation eliminates the need for users to constantly monitor the market, providing peace of mind and convenience.
• Protocols Automation: Many protocols require automated functions such as token transfers, value calculations, reserve maintenance, and rebalancing. PowerAgent is ideally suited for these tasks, thanks to its guaranteed execution through a robust slashing mechanism that ensures tasks are completed as scheduled. This level of automation is crucial for maintaining the efficiency and reliability of various DeFi protocols, reducing operational burdens, and enhancing performance.
• AMM Position Management: Modern Automated Market Makers (AMMs) like Uniswap V3/V4 require users to provide liquidity within specific price ranges to earn higher trading fees. This necessitates continuous monitoring and adjustment of positions to avoid significant impermanent loss. PowerAgent can automate the management of these positions, adjusting them as needed to optimize returns. If an assigned Keeper fails to execute these adjustments, they are penalized, ensuring reliability and efficiency in managing AMM positions.

PowerPool’s PowerAgent dePIN network provides a robust solution for automating complex DeFi and Web3 tasks. This automation not only enhances operational efficiency but also maximizes users’ returns by ensuring timely and accurate execution of various strategies and functions.

PowerPool Main Features

PowerPool offers a decentralized and permissionless layer for automatic smart contract executions. This robust framework includes automated Keeper stake slashing to protect task owners from losses due to non-execution, ensuring gas efficiency and compatibility with any EVM-compatible blockchain. PowerPool’s innovative architecture allows for seamless integration and reliable task execution, making it an essential tool for DeFi automation.

Advanced Automation Capabilities

PowerPool’s current research and development focus on enhancing automation capabilities. This includes ZK-powered off-chain computations, data input to execution logic, and support for various algorithms for Keepers’ selection, slashing, and reward calculation. The platform is designed to handle complex strategies involving high-value tasks and can automatically call AI agents powered by Large Language Models (LLMs) or other AI models to make transaction execution decisions. Additionally, PowerPool uses Verifiable Random Function (VRF) for decentralized Keeper selection, ensuring reliability and fairness.

Source: powerpool.finance

PowerAgent

The PowerAgent network is the core of PowerPool’s automation capabilities. It provides robust on-chain action automation for DeFi users and protocols through a decentralized network of community-run Keepers. The open-source codebase invites community contributions, ensuring continuous improvement and adaptability. PowerAgent supports a wide range of automation use cases, offering configurable execution conditions suitable for both routine and high-value tasks. The permissionless nature of PowerAgent allows anyone to run a Keeper node or create and fund a job, making it an inclusive platform for automation enthusiasts.

Source: powerpool.finance

Blockchain Automation

The evolution of DeFi protocols necessitates more autonomous automation to handle routine on-chain tasks. PowerPool addresses this need by developing a comprehensive automation network that can execute self-incentivized transactions, such as collateral liquidations, and non-incentivized transactions, like updating protocol parameters. This automation capability reduces operational costs and enhances the efficiency of DeFi protocols. PowerPool envisions that its automation network will play a crucial role in enabling the next generation of intelligent, multi-chain, yield-optimizing DeFi protocols.

Legacy Products

Since August 2020, PowerPool DAO has collaborated with prominent Web3 teams and protocol contributors to create various DeFi products. However, the focus has now shifted to building a top-tier automation network. Legacy products like PowerIndex (PIPT), Yearn Lazy Ape (YLA), ASSY, xCVP, and Yearn Ecosystem Token Index (YETI) were innovative solutions proposed by industry leaders but have been deprecated to concentrate on developing the PowerAgent network. This strategic pivot ensures that PowerPool remains at the forefront of DeFi automation technology.

Source: powerpool.finance

PowerPool Research

PowerPool Research is the DAO’s dedicated division for on-chain data collection, simulation, optimization, and product prototyping. The primary goal is to solve complex challenges and deliver optimized, safe, and reliable products in collaboration with other protocols. The research team, fully funded by PowerPool DAO, offers free collaboration to generate results that enhance product development and deepen DeFi understanding. Key projects include developing Keeper selection algorithms, designing the PowerPool VRF for secure random numbers on-chain, and creating an automatic liquidation protection template for AAVE v3.

Source: powerpool.finance

What is the CVP Coin?

CVP is PowerPool’s governance token, enabling decentralized decision-making and protocol management. Its total supply counts 100 million units, of which 31 million are already in circulation (July 2024).

CVP functions as both a security and governance token within the ecosystem. To operate a PowerPool Keeper node, participants must stake CVP, with a minimum requirement of 1000 CVP. This staking mechanism acts as a safeguard against malicious behavior, ensuring network integrity. Keepers with insufficient stakes are disqualified from executing tasks, while higher stakes correlate with increased execution fees.

CVP also grants governance rights, allowing token holders to influence key protocol decisions within the PowerPool DAO. Proposals require a minimum quorum of 400k CVP votes, with outcomes determined by a simple majority. This governance structure ensures the community has a direct say in the protocol’s direction and development.

The token was distributed through initial liquidity mining and a Community Drop, without VC funding. The total supply of CVP is 100,000,000, with various allocations including the Ecosystem Fund, Team, and Protocol Treasury. The CVP token distribution includes 31.1% in circulation, 30% in the protocol treasury, 17.5% for the team, 10% in the ecosystem fund, 9.5% burned, and 1.9% in the community drop.

Source: powerpool.finance

CVP’s dual role in staking and governance makes it a crucial component of PowerPool’s decentralized infrastructure, enabling secure, automated transaction execution and democratic decision-making. The staking design allows users to define the minimum and maximum stakes for Keepers, determining their eligibility and reward levels for executing tasks. This flexible staking system ensures that only adequately staked Keepers can perform tasks, providing a robust security framework for the network.

In summary, CVP is essential for the operational security of PowerPool’s Keeper network and the protocol’s governance, supporting a decentralized, permissionless, and automated DeFi ecosystem.

Is CVP a Good Investment?

CVP offers strong utility by securing the Keepers network and enabling decentralized governance, which can drive its demand and adoption in the DeFi space. Additionally, its role in automating complex on-chain tasks presents significant growth potential as DeFi and Web3 adoption increase. However, the project’s success heavily relies on widespread adoption and the continuous performance of its automation network. Any technical failures or lack of user adoption could adversely affect CVP’s value and utility.

How to Own CVP?

To own CVP, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account and getting it verified and funded. Then, you are ready to proceed with the steps to buy CVP.

News on PowerPool

According to what was announced on the PowerPool blog on 5 July 2024, PowerPool is expanding its focus to integrate Web3 AI protocols and streamline DeFi automation. The updated Q3/Q4 2024 roadmap includes multi-chain expansion, marketing campaigns, and community engagement initiatives such as the PowerPool Rewards Program and CVP staking program. Key events include participation in ETHCC Brussels, Korea Blockchain Week, and DevCon 2024 in Bangkok. Technical advancements include deploying PowerAgent on L2 Rollups and launching the PowerPool VRF.

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